Can Beggars Pizza require a franchisee's annual financial statements to be reviewed?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.1 Gross Sales Reports.
Franchisee must record all sales on a point-of-sale recordkeeping and control system designated by Franchisor, or on any other equipment specified by Franchisor in the Manual or otherwise in writing.
Franchisee must maintain a record of all Gross Sales and expenses using such software or other means as specified by Franchisor in the Manual or otherwise in writing.
Franchisee must provide Franchisor with such Gross Sales records together with Franchisee's Royalty Fee payments as required by Section 4.5 hereof.
Such reports must be submitted to Franchisor by such means as designated by Franchisor in the Manual or otherwise in writing including, without limitation, an Internet-based management system or other system that allows Franchisor instant, unrestricted access to Franchisee's sales information.
Any report not actually received by Franchisor on or before the due date will be deemed overdue.
If a report is overdue, all payments to Franchisor for that Accounting Period, whether or not timely received, will be deemed overdue until such time as Franchisor has received the required report, and late charges will be due as provided in Section 4.5.
Franchisor may access any business information or data collected and generated on Franchisee's point of sale system.
- 11.2 Other Reports.
Franchisee must, at Franchisee's expense, submit to Franchisor in the form prescribed by Franchisor, within fifteen (15) days after the close of each month, unaudited financial statements showing the results of operations of the Restaurant during the preceding calendar month including, without limitation, a complete and accurate profit and loss statement and balance sheet, and such other forms, reports, records, information, and data as Franchisor may reasonably designate.
- 11.3 Annual Financial Statements.
Franchisee must, at Franchisee's expense, submit to Franchisor in the form prescribed by Franchisor, within ninety (90) days after the end of each fiscal year, Franchisee's financial statements for the p
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees must submit annual financial statements to Beggars Pizza. These statements, in a form prescribed by Beggars Pizza, are due within 90 days after the end of each fiscal year. The franchisee bears the expense of preparing and submitting these financial statements.
In addition to annual financial statements, Beggars Pizza also requires franchisees to submit unaudited monthly financial statements within 15 days after the close of each month. These monthly statements must include a complete and accurate profit and loss statement and balance sheet, along with any other forms, reports, records, information, and data that Beggars Pizza may reasonably designate.
Beggars Pizza also requires franchisees to record all sales on a point-of-sale recordkeeping and control system designated by Beggars Pizza, or on any other equipment specified by Beggars Pizza in the Manual or otherwise in writing. Franchisees must maintain a record of all Gross Sales and expenses using such software or other means as specified by Beggars Pizza in the Manual or otherwise in writing. Franchisees must provide Beggars Pizza with such Gross Sales records together with Franchisee's Royalty Fee payments as required by Section 4.5 hereof. Beggars Pizza may access any business information or data collected and generated on Franchisee's point of sale system.