What is the relationship between Beggars Pizza and Begcom?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor has developed and sells through its affiliate, Begcom LLC ("Begcom"), certain trade secret food ingredients for use in the System including, without limitation, pizza dough, spaghetti and pizza sauces, sausage, and secret spice blends, and may develop additional trade secret food ingredients during the term hereof from time to time;
Franchisor sells such products through Begcom or other designated suppliers.
Begcom is the designated supplier of certain additional food items and supplies (including, without limitation, cheeses, sausages, and paper products), some of which bear the Proprietary Marks and some of which do not bear the Proprietary Marks, and Franchisor may from time to time specify in the Manual or otherwise in writing certain other parties that will be designated suppliers for specified products, materials, supplies, paper goods, fixtures, furnishings and equipment used or sold at the Restaurant.
As an inducement to Beggars Pizza Franchise, LLC ("Franchisor") to execute the Beggars Pizza Franchise, LLC Franchise Agreement between Franchisor and ("Franchisee") dated , 20 (the "Franchise Agreement"), the undersigned ("Guarantors"), jointly and severally hereby unconditionally guarantee to Franchisor and its successors and assigns that all of Franchisee's obligations under the Franchise Agreement and the Commissary Agreement between Begcom LLC ("Begcom") and Franchisee (collectively, the "Agreements") will be punctually paid and performed.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, Begcom LLC is an affiliate of Beggars Pizza. Beggars Pizza has developed and sells certain trade secret food ingredients through Begcom, including pizza dough, spaghetti and pizza sauces, sausage, and secret spice blends. Beggars Pizza may develop additional trade secret food ingredients during the term of the agreement.
Prospective franchisees are required to sign a Commissary Agreement with Begcom. Franchisees must purchase certain food items and supplies, such as cheeses, sausages, and paper products, from Begcom or other designated suppliers to ensure the uniform quality and image associated with Beggars Pizza restaurants. Some of these items bear the Proprietary Marks, while others do not.
Furthermore, in the Guarantee, Indemnification, and Acknowledgment section, the guarantor(s) agree to guarantee the franchisee's obligations not only to Beggars Pizza but also to Begcom under the Commissary Agreement. This means that if a franchisee fails to meet their financial or performance obligations to Begcom, the guarantor(s) are responsible for fulfilling those obligations. This arrangement underscores the close operational and financial relationship between Beggars Pizza and Begcom.