Who pays for the evaluation and testing of a proposed supplier for Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If you desire to purchase products from a party other than an approved supplier, you must submit a written request to us to approve the proposed supplier with evidence of conformity with our specifications as we may require. You must pay the costs of our evaluation and testing of the proposed supplier. We will use our best efforts to notify you of our approval or disapproval of the proposed supplier within 30 days after our receipt of your request. Our approval will not be unreasonably withheld. If you do not receive our decision within this 30-day period, the supplier will be deemed unapproved. You may not sell or offer for sale any products of the proposed supplier until you receive our written approval of the supplier. We may revoke our approval of particular products or suppliers at any time we determine that such products or suppliers no longer meet our standards in our sole discretion.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee is responsible for covering the costs associated with the evaluation and testing of any supplier they propose that is not already an approved vendor. This means that if a franchisee wants to use a different supplier, they must first get Beggars Pizza to approve the new supplier, and the franchisee will have to pay for the costs of this approval process.
Beggars Pizza outlines that if a franchisee desires to purchase products from a party other than an approved supplier, they must submit a written request to Beggars Pizza for approval, including evidence of conformity with Beggars Pizza's specifications. The franchisee is responsible for paying the costs of Beggars Pizza's evaluation and testing of the proposed supplier. Beggars Pizza will then use its best efforts to notify the franchisee of its approval or disapproval of the proposed supplier within 30 days after receiving the request. However, if the franchisee does not receive a decision within this 30-day period, the supplier will be deemed unapproved.
The approval of a supplier can be revoked at any time if Beggars Pizza determines that the products or suppliers no longer meet their standards. This requirement ensures that all products used at Beggars Pizza restaurants meet the franchisor's standards and maintain the quality and consistency of the brand.
This is a fairly standard practice in franchising, as franchisors typically want to maintain tight control over the supply chain to ensure quality and consistency across all locations. However, it's important for prospective franchisees to understand that they may incur additional costs if they wish to use suppliers that are not already approved by Beggars Pizza.