What are the remedies available to Beggars Pizza and Begcom if a franchisee fails to make payments?

According to Beggars Pizza's 2025 Franchise Disclosure Document, both Beggars Pizza and Begcom have specific remedies available if a franchisee fails to make payments. These remedies are applicable if a franchisee fails to make payments under the Franchise Agreement, the Commissary Agreement, or any other agreement. This is important because franchisees are required to purchase certain products from Begcom, so payment compliance is critical.

Specifically, Beggars Pizza and Begcom can (a) suspend or refuse shipment of additional products until full payment is made. This means that if a franchisee is behind on payments, they may not receive the necessary supplies to operate their Beggars Pizza restaurant. Additionally, (b) Beggars Pizza and Begcom can require that all future shipments of products be made on a cash-on-delivery basis. This could create cash flow challenges for a franchisee, as they would need to have cash on hand to receive shipments.

These remedies are fairly standard in franchising. Franchisors need to ensure they receive payment for goods and services provided to franchisees. The ability to suspend shipments and require cash-on-delivery protects Beggars Pizza and Begcom from further financial losses due to non-payment. Prospective franchisees should be aware of these potential consequences and ensure they have a solid financial plan to meet their payment obligations.