What rebates did Beg Adv, Inc. derive from Beggars Pizza franchisee purchases in 2024?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
isee purchases. In the year ending December 31, 2024, Begcom derived approximately $6,398,528 in revenue from the sale of approved products to our franchisees and our affiliateowned Beggars Pizza® Restaurants. Beg Adv, Inc. derived approximately $252,148 in rebates or commissions from required franchisee purchases and affiliate-owned Beggars Pizza® Restaurant
purchases from our designated and approved suppliers; specifically, it received rebates for purchases of sodas (approximately $3.00 per gallon), food and paper products (flat fee ranging from approximately $1.00 to $7.00), meat and other pizza toppings ($0.10 per pound), and pizza sauce ($1.00 to $1.50 per case). All rebates, including those generated by affiliate-owned locations, were contributed to the Brand Fund operated by Beg Adv, Inc. and described in Item 11. Laurance Garetto and Cheryl Garetto own an int
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, Beg Adv, Inc. derived approximately $252,148 in rebates or commissions from required franchisee purchases and affiliate-owned Beggars Pizza® Restaurant purchases from designated and approved suppliers during the year ending December 31, 2024. These rebates were specifically for purchases of sodas (approximately $3.00 per gallon), food and paper products (flat fee ranging from approximately $1.00 to $7.00), meat and other pizza toppings ($0.10 per pound), and pizza sauce ($1.00 to $1.50 per case).
All of these rebates, including those generated by affiliate-owned locations, were contributed to the Brand Fund operated by Beg Adv, Inc. This Brand Fund is further described in Item 11 of the FDD. It is important to note that Laurance Garetto and Cheryl Garetto own an interest in Begcom.
For a prospective franchisee, this means that a portion of their purchases from approved suppliers results in rebates that go into a Brand Fund, which is presumably used for marketing and advertising efforts to benefit the Beggars Pizza system as a whole. However, franchisees do not directly benefit from these rebates in the form of reduced costs or direct payments. Instead, the benefit is indirect, through the potential increase in brand awareness and customer traffic driven by the Brand Fund's activities. Franchisees should review Item 11 to understand how the Brand Fund is managed and how the funds are used.