Can Beggars Pizza require franchisees to purchase approved services solely from Beggars Pizza or an affiliate of Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may require Franchisee to purchase any approved products, equipment, and merchandise solely from Franchisor or an affiliate of Franchisor.
If Franchisee desires to purchase products from a party other than an approved supplier, Franchisee must submit to Franchisor a written request to approve the proposed supplier, together with such evidence of conformity with Franchisor's specifications as Franchisor may reasonably require.
Franchisor may require that its representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered for evaluation and testing either to Franchisor or an independent testing facility designated by Franchisor.
Franchisee must pay a charge not to exceed the cost of the evaluation and testing.
Franchisor must use its best efforts to notify Franchisee in writing of its approval or disapproval of the proposed supplier within thirty days after the completion of such evaluation and testing.
Franchisee must not sell or offer for sale any products of the proposed supplier until Franchisor's written approval of the proposed supplier is received.
Franchisor may from time to time revoke its approval of particular products or suppliers when Franchisor determines, in its sole discretion, that such products or suppliers no longer meet Franchisor's standards.
Upon receipt of written notice of such revocation, Franchisee must cease to sell any disapproved products and cease to purchase from any disapproved supplier.
Franchisee must use products purchased from approved suppliers solely for the purpose of operating the Restaurant and not for any other purpose including, without limitation, resale.
Nothing in the foregoing will be construed to require Franchisor to make available to prospective suppliers, standards and specifications for formulas including, without limitation, recipes or ingredients for proprietary or trade secret products that Franchisor deems confidential in its sole discretion.
Notwithstanding the above, Franchisor may require Franchisee to purchase any approved products, equipment, merchandise, or services used in the Restaurant solely from Franchisor or an affiliate of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, Beggars Pizza has the right to mandate that franchisees purchase approved products, equipment, merchandise, or services exclusively from Beggars Pizza itself or from one of its affiliates. This requirement extends to all products sold or offered for sale at the restaurant, as well as other products, materials, supplies, paper goods, fixtures, furnishings, and equipment used or sold at the restaurant.
This means that as a Beggars Pizza franchisee, you may be obligated to source certain items directly from the franchisor or its affiliated companies, limiting your ability to shop around for potentially better prices or terms from independent suppliers. While Beggars Pizza establishes standards and specifications for these items, franchisees must adhere to these designated sources unless they obtain explicit approval for an alternative supplier.
However, if a franchisee wants to use a different supplier, they can submit a written request to Beggars Pizza for approval. Beggars Pizza can then inspect the supplier's facilities and test samples, with the franchisee covering the costs of these evaluations. Beggars Pizza is expected to respond to the request within 30 days after the completion of the evaluation and testing. Beggars Pizza can also revoke approval of products or suppliers if they no longer meet the company's standards, and franchisees must stop using those products or suppliers upon receiving written notice.