What is the relationship between the Franchise Agreement and the Beggars Pizza Commissary Agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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EXHIBIT D
BEGCOM, LLC COMMISSARY AGREEMENT
BEGCOM, LLC COMMISSARY AGREEMENT
| entered into on | (the "Agreement Date"), by and between |
|---|---|
| , 20 | |
| , a | located at ("Franchisee"); and BEGCOM, LLC, an Illinois |
| ("Supplier"). | limited liability company located at 12949 South California Avenue, Blue Island, Illinois 60406 WITNESSETH: |
| "Manual") in their sole discretion (the "Products"); | WHEREAS, Supplier prepares, stores, and sells the food products set forth in Exhibit A, and such additional products as Supplier or Beggars Pizza Franchise, LLC ("Beggars") may designate from time to time in writing or in the Beggars confidential operations manual (the |
| WHEREAS, pursuant to a Beggars Pizza Franchise Agreement dated | |
| , 20 | (the "Franchise Agreement"), between Franchisee and Beggars, Franchisee |
| Products for retail consumption (the "Beggars Restaurant"); and | operates a franchised business under the name "Beggars Pizza" that uses and/or sells the |
| Franchisee, the Products in connection with the Beggars Restaurant. | WHEREAS, Franchisee desires to purchase from Supplier, and Supplier desires to sell to |
AGREEMENT:
NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
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- Appointment. Franchisee hereby appoints Supplier as a supplier of the Products, and Supplier hereby accepts such 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. Either party will have the right to terminate the Agreement upon thirty (30) days prior written notice and opportunity to cure if a material default by the other party occurs.
3. Product Purchase Price; Deliveries; Additional Fees.
- (a) Purchase Price. The current purchase price (the "Price") for each Product charged by Supplier and paid by Franchisee as of the Agreement Date is set forth in Exhibit A.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the Beggars Pizza Commissary Agreement, officially titled the BEGCOM, LLC Commissary Agreement, is directly tied to the Franchise Agreement. Specifically, the Commissary Agreement outlines the terms under which a franchisee purchases products from BEGCOM, LLC, a designated supplier. The Franchise Agreement is referenced within the Commissary Agreement, establishing a clear link between the two.
The Commissary Agreement's term is dependent on the Franchise Agreement; it remains effective until the Franchise Agreement expires or is terminated. Termination of the Franchise Agreement automatically terminates the Commissary Agreement. This means that a franchisee's ability to purchase supplies from the designated supplier is contingent upon maintaining a valid Franchise Agreement with Beggars Pizza.
Beggars Pizza franchisees are required to purchase food products from approved suppliers, and the Commissary Agreement formalizes this arrangement. The agreement includes details such as product pricing, delivery schedules, and payment terms. Beggars Pizza retains the right to approve other suppliers, indicating that while BEGCOM, LLC is a primary supplier, franchisees may have options if Beggars Pizza approves alternative sources in accordance with the terms of the Franchise Agreement. Any deviations or modifications to the Commissary Agreement must be documented in writing and agreed upon by all parties involved.
In essence, the Commissary Agreement ensures that Beggars Pizza franchisees adhere to the brand's standards by sourcing products from approved suppliers, with the Franchise Agreement serving as the foundational agreement that governs the overall relationship and the duration of the supply arrangement.