What is the relationship between the Franchise Agreement and the agreement between the Franchisee and Supplier for Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
uch appointment subject to the terms and conditions set forth below. Supplier and Franchisee acknowledge and agree that this is a non-exclusive appointment and that during the Term (as defined below) other suppliers may or could be retained to perform the same or similar duties if such suppliers are approved by Beggars in accordance with the terms of the Franchise Agreement.
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- Term; Termination. The Agreement will become effective on the Agreement Date and, except as otherwise provided in the Agreement, will remain in full force and effect until the sooner of the expiration or termination of the Franchise Agreement (the "Term"). The Agreement will automatically terminate upon the termination of the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the agreement between the franchisee and the supplier is directly tied to the Franchise Agreement. Specifically, the supplier agreement's term is linked to the Franchise Agreement's term; the supplier agreement remains effective until the Franchise Agreement expires or is terminated. If the Franchise Agreement is terminated, the supplier agreement automatically terminates as well. This close relationship underscores the importance of maintaining a good standing in the Franchise Agreement, as any issues there could impact the franchisee's supply chain.
This arrangement ensures that the supplier's commitment to providing products is aligned with the franchisee's operation of a Beggars Pizza restaurant under the franchise system. It also allows Beggars Pizza to maintain a level of control over the supply chain, as any termination of the Franchise Agreement would also end the supplier's obligations to the franchisee.
Furthermore, the agreement outlines that the supplier appointment is non-exclusive, meaning that other suppliers could be retained if approved by Beggars Pizza in accordance with the terms of the Franchise Agreement. This clause provides Beggars Pizza with flexibility in managing its supply chain and ensuring that franchisees have access to the necessary products to operate their restaurants. The Franchise Agreement dictates the standards and conditions under which alternative suppliers can be approved, adding another layer of interdependence between the two agreements.