How are payments to the Cooperative credited for a Beggars Pizza franchisee?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Any payments you make to the Cooperative will be credited towards your required local advertising expenditure.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, any payments a franchisee makes to a Cooperative will be credited toward their required local advertising expenditure.
The Cooperative's purpose is to administer local and/or regional advertising programs and develop standardized advertising materials for its members, subject to Beggars Pizza's approval. The Cooperative can require members to contribute an amount determined by the cooperative, up to a maximum of 2% of Gross Sales during any calendar year. However, with a two-thirds vote, the members can agree to a greater contribution.
Beggars Pizza retains the power to form, change, dissolve, or merge any Cooperative. This ensures that the advertising efforts align with the overall brand strategy and standards set by the company. This structure allows for both local flexibility and corporate oversight in advertising and promotional activities.