When are all payments to the Beggars Pizza franchisor considered overdue?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
), any reduction in revenue due to discounts or coupon sales, any sales taxes or other taxes collected from customers by Franchisee and paid directly to the appropriate taxing authority. "Accounting Period" means every seven (7) days beginning on Monday and ending on Sunday. Each Monday Franchisee must pay to Franchisor all amounts due to Franchisor for the previous Monday through Sunday (i.e., the previous Accounting Period) via electronic funds transfer ("EFT") as set forth in Section 4.6 and Section 4.7. Franchisor hereby expressly reserves the right to designate such other period (which may include a shorter period) as the Accounting Period that Franchisor may specify in the Manual or in writing from time to time.
- 4.4 Payments to Begcom. Franchisee must pay Begcom for all products and supplies that Franchisee purchases from Begcom on the terms and conditions described in the Commissary Agreement described in Section 7.4.3.1.
- 4.5 Advertising Expenditures. Franchisee must make monthly expenditures and contributions for advertising and promotion as specified in Section 12.
- 4.6 Payments. All payments to Franchisor required by Section 4.2 and Section 12 must be paid at the beginning of each Accounting Period based on the Gross Sales from the preceding Accounting Period. All such payments must be made by EFT in the manner set forth in Section 4.7. All such payments must be accompanied by such Gross Sales reports as Franchisor requires under Section 11.2. Any payment or Gross Sales report not actually received by Franchisor on or before such date will be deemed overdue.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, any payment or Gross Sales report not received by the franchisor on or before the due date is considered overdue. Beggars Pizza franchisees are required to pay all amounts due to the franchisor for the previous Monday through Sunday (referred to as the previous Accounting Period) each Monday via electronic funds transfer (EFT). These payments are based on Gross Sales from the preceding Accounting Period and must be accompanied by Gross Sales reports.
This means that if Beggars Pizza does not receive a payment or the associated Gross Sales report by the close of business on Monday, it is immediately considered overdue. The FDD specifies that the franchisor can designate a different Accounting Period in the manual or in writing.
If a payment is overdue, Beggars Pizza will charge a late fee of two percent (2%) per month on the overdue amount, or the maximum rate permitted by applicable law, from the date it was due until it is received. This late charge is in addition to any other remedies that Beggars Pizza may pursue. The franchisee is not entitled to offset any payments against any monetary claim they may have against Beggars Pizza. Beggars Pizza also retains the right to have franchisees make payments to an affiliate of the franchisor.