What is the primary business purpose of Beggars Pizza Franchise, LLC?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
nd of the year | $ | 250,943 | $ 223,946 |
1. Summary of Significant Accounting Policies
Organization – Beggars Pizza Franchise, LLC (formerly known as Beggars Pizza Franchise Corporation) (the "Company") was incorporated under the laws of the State of Illinois on April 15, 2004. The Company was established to franchise Beggars Pizza specialty pizza retail stores in the Chicagoland area.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 FDD, Beggars Pizza Franchise, LLC was established to franchise Beggars Pizza specialty pizza retail stores, primarily in the Chicagoland area. The company was incorporated in Illinois on April 15, 2004. As of December 31, 2024 and 2023, there were 20 Beggars Pizza franchises open.
Beggars Pizza generates revenue mainly through franchise fees and royalties. They grant franchisees the right to operate a Beggars Pizza location within a specific territory, allowing them to use the Beggars Pizza brand name. In addition to the rights to operate under the Beggars Pizza name, Beggars Pizza also provides assistance with site selection, training, operating manuals, menu preparation and distribution, and quality control inspections.
For a prospective franchisee, this means that Beggars Pizza's core business is expanding its brand presence through franchising. Franchisees pay fees and ongoing royalties for the right to operate a Beggars Pizza store and receive support services from the franchisor. The success of Beggars Pizza as a franchisor depends on the success of its franchisees, as royalty income is tied to franchisee sales. The FDD indicates that franchisees receive additional services such as marketing and commissary needs, which are provided by affiliated entities as allowed by the franchise agreement. Marketing fees totaling 1% of the franchisee weekly sales are paid by franchisees directly to Beg Adv, LLC. Commissary stores at each franchisee are ordered and fulfilled with Begcom, LLC.