What were the reported distributions for Beggars Pizza in 2024?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
based on the provisions of the Agreement. A general description of the Agreements distribution provisions are as follows:
First, 100 percent to Class A members' pro rata until the cumulative distributions received by the members equals $4,176,000.
Second, 100 percent to the Class B and C members in proportion to their vested percentage until the cumulative distributions received by such members equals $2,435,999.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the distributions are allocated to different classes of members (A, B, and C) based on a tiered system. The first $4,176,000 of distributions goes to Class A members pro rata. The next $2,435,999 is distributed to Class B and C members in proportion to their vested percentage. After these initial distributions, the remaining amounts are distributed pro rata with 63.2% to Class A, 30% to Class B, and 6.8% to Class C.
As of December 31, 2024, the Class B units were not vested. This means that only Class A and Class C members would have received distributions. The specific amounts distributed to each class in 2024 are not detailed in this excerpt, but the FDD outlines the order and percentages by which distributions are allocated among the member classes.
A prospective franchisee should note that these distributions relate to the overall profitability and allocation of funds within the Beggars Pizza Franchise, LLC, and do not directly reflect the potential earnings or distributions a franchisee might receive from their individual franchise location. Understanding the distribution structure can provide insight into the financial structure of the franchise company itself.