Who pays for the independent appraiser in a Beggars Pizza franchise transfer?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may require any or all of the following as conditions of its approval in its sole discretion:
14.3.1 That all of Franchisee's accrued monetary obligations and all other outstanding obligations to Franchisor and its affiliates have been satisfied;
14.3.2 That Franchisee is not in default of any provision of the Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee and Franchisor or its affiliates;
14.3.3 That the consideration or payment terms offered by a proposed transferee are not excessive or unreasonable, based on the gross revenues of the Restaurant and sale prices of other Beggars Pizza® restaurants in the System in Franchisor's reasonable business judgment;
14.3.4 That the transferor executes a general release, in a form satisfactory to Franchisor, of any claims against Franchisor and its affiliates, and their respective officers, directors, agents, shareholders, and employees;
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;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
The 2025 Beggars Pizza Franchise Disclosure Document does not specify who is responsible for covering the costs of an independent appraiser during a franchise transfer. However, the FDD does outline several conditions that Beggars Pizza may require for approving a transfer. These conditions include ensuring that all of the franchisee's financial and other obligations to Beggars Pizza are met, and that the franchisee is not in default of any agreements. Beggars Pizza also assesses whether the payment terms offered by the proposed transferee are reasonable based on the restaurant's gross revenues and the sale prices of other Beggars Pizza restaurants.
Additionally, Beggars Pizza may require the transferring franchisee to execute a general release of any claims against Beggars Pizza. The transferee must also enter into a written agreement assuming all of the franchisee's obligations or execute Beggars Pizza's current franchise agreement, which may include different terms such as higher royalty fees or advertising contributions.
Because the FDD does not specify who pays for the independent appraiser, it is important for prospective franchisees to seek clarification from Beggars Pizza regarding this cost and other potential expenses associated with the transfer process. Understanding these costs upfront can help in making informed financial decisions.