What is the renewal fee that the Franchisee must pay to the Franchisor for Beggars Pizza?
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 is not specified within the provided excerpts. The document states that the franchisee will pay a renewal fee to the franchisor of "($ )" upon execution of the agreement. This indicates that the actual dollar amount is not provided in this section of the FDD.
It is important to note that the renewal fee is fully earned and non-refundable, covering the franchisor's administrative and other expenses related to granting the renewal, as well as the franchisor's lost or deferred opportunity to franchise with other parties. This means that once the fee is paid, it cannot be returned to the franchisee under any circumstances.
Prospective franchisees should inquire with Beggars Pizza directly to obtain the specific dollar amount of the renewal fee. Understanding this fee is crucial for financial planning and assessing the overall cost of continuing the franchise agreement beyond its initial term. It would also be prudent to understand if the renewal fee is subject to change and how those changes would be communicated.