How are payments to Beggars Pizza for royalty fees and advertising expenditures to be made?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that such participation may require the payment and/or transfer of gift card revenue to a centralized account controlled by Franchisor, its affiliate, or to a designated third party for the administration of the gift card program.
- 7.4.14 To participate in all online, electronic, or centralized ordering programs developed or designated by Franchisor for the System, and only such online, electronic, or centralized ordering programs developed or designated by Franchisor, as prescribed by Franchisor in the Manual or otherwise in writing from time to time.
Such participation may include, without limitation, installing and using, at Franchisee's expense, the required fixtures, equipment, and information systems necessary for participation, and paying to Franchisor and/or a designated third- party provider the then-current fees associated with such programs.
Should Franchisee, for any reason, fail to correct such deficiencies within a reasonable time as determined by Franchisor, Franchisor will have the right, but not the obligation, to correct any deficiencies which may be susceptible to correction by Franchisor and to charge Franchisee a reasonable fee for Franchisor's expenses in so acting, payable to Franchisor upon demand.
14.3.1 That all of Franchisee's accrued monetary obligations and all other outstanding obligations to Franchisor and its affiliates have been satisfied;
14.3.5 That (a) (i) the transferee (and if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Franchisor may request) enters into a written assignment, in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under the Agreement, or (ii) the transferee executes, for a term ending on the expiration date of the Agreement and with such renewal terms as may be provided by the Agreement, Franchisor's then-current form of franchise agreement and other ancillary agreements as Franchisor may require for the Restaurant, which agreements will supersede the Agreement in all respects, and the terms of which may differ from the terms of the Agreement including, without limitation, a higher royalty fee and advertising contribution and a smaller or modified Franchisee's Territory, except that transferee will not be required to pay any initial franchise fee, and (b) the transferee or its principals guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;
Upon demand by Franchisor, Guarantors must immediately make each payment to Franchisor and Begcom required of Franchisee under the Agreements.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Beggars Pizza Franchise Disclosure Document, the franchisee may be required to make payments and/or transfer gift card revenue to a centralized account controlled by Beggars Pizza, its affiliate, or a designated third party for the administration of the gift card program. Franchisees must participate in all online, electronic, or centralized ordering programs developed or designated by Beggars Pizza for the system.
Participation in these programs may include installing and using required fixtures, equipment, and information systems at the franchisee's expense. Additionally, franchisees may have to pay Beggars Pizza and/or a designated third-party provider the current fees associated with these programs. Beggars Pizza also has the right to correct deficiencies and charge the franchisee a reasonable fee for their expenses, payable upon demand, should the franchisee fail to correct the deficiencies within a reasonable time.
When transferring the franchise to a new owner, Beggars Pizza requires that all accrued monetary obligations and all other outstanding obligations to Beggars Pizza and its affiliates be satisfied. The new franchisee may be subject to a higher royalty fee and advertising contribution. These payments and obligations are guaranteed by the franchisee's principals, who must ensure all payments are made to Beggars Pizza and Begcom LLC under the Franchise Agreement and the Commissary Agreement.
Overall, the FDD indicates that payments for royalty fees, advertising, and other program-related expenses are made to Beggars Pizza, its affiliates, or designated third parties through methods prescribed in the manual or in writing. The franchisee bears the responsibility for ensuring timely and correct payments to maintain compliance with the franchise agreement.