How is the renewal fee for a Beggars Pizza franchise calculated?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
that Franchisee has no right to further renew the Franchise Agreement after the term of the Franchise Agreement.
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- Section 3.1, Section 3.3, and Section 3.4 of the Franchise Agreement are hereby deleted in their entirety.
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- Section 4.1 of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
- 4.1 Renewal Fee. In consideration of the renewal franchise rights granted herein, Franchisee will pay a renewal fee to Franchisor of ($ ) upon execut
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the renewal fee calculation is not specified. Instead, Section 4.1 of the franchise agreement states that the franchisee will pay a renewal fee to Beggars Pizza of a specified dollar amount upon execution of the renewal agreement. However, the actual dollar amount is left blank in the agreement.
This renewal fee is considered fully earned and non-refundable. This is to cover the administrative and other expenses that Beggars Pizza incurs when granting the renewal franchise. It also compensates Beggars Pizza for the lost opportunity to offer a franchise to someone else.
Prospective franchisees should note that the lack of a specified renewal fee in the FDD means the fee is subject to negotiation or determination by Beggars Pizza at the time of renewal. It is important for potential franchisees to discuss the renewal fee structure and potential amounts with Beggars Pizza during their due diligence process to fully understand the financial implications of renewing their franchise agreement.