When are payments for royalty fees and advertising expenditures due to Beggars Pizza?
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. If any payment or Gross Sales report is overdue, Franchisee must pay Franchisor immediately upon demand, in addition to the overdue amount, a "late charge" on such amount from the date it was due until received by Franchisor, at the rate of two percent (2%) per month on the overdue amount, or the maximum rate permitted by applicable law.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, royalty fees and advertising expenditures have different payment schedules. Each Monday, the franchisee must pay all amounts due to Beggars Pizza for the previous Monday through Sunday, which is defined as the previous Accounting Period. This payment is to be made via electronic funds transfer (EFT). However, Beggars Pizza retains the right to designate a different Accounting Period, potentially shorter, as specified in the manual or in writing.
Advertising expenditures require monthly contributions, as detailed in Section 12 of the franchise agreement. All payments to Beggars Pizza required by Section 4.2 (likely covering royalties) and Section 12 (advertising) must be paid at the beginning of each Accounting Period. These payments are based on the Gross Sales from the preceding Accounting Period and must be made via EFT, accompanied by the required Gross Sales reports.
Any payment or Gross Sales report not received by Beggars Pizza on or before the due date is considered overdue. In such cases, the franchisee must immediately pay Beggars Pizza upon demand the overdue amount, along with a late charge 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 received. This late charge is in addition to any other remedies Beggars Pizza may have.
It is important for prospective Beggars Pizza franchisees to understand these payment terms and ensure they can meet the required deadlines to avoid late charges and potential breaches of the franchise agreement. The franchisee is not entitled to offset any payments required to be made under this section against any monetary claim it may have against Beggars Pizza. Beggars Pizza may require the franchisee to make any or all payments under the Agreement to an affiliate of Beggars Pizza.