Can Beggars Pizza require franchisees to purchase special hardware or software to participate in online ordering programs?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate in any online, electronic, or centralized ordering programs that we develop, which may include the purchase of special hardware, software, fixtures, or equipment at your expense. (Franchise Agreement, Section 7.4.14.) The systems currently necessary to participate in our online ordering programs are described in this Item 11 under "Computer Systems."
You must purchase and use a computer/point of sale system that we specify. Currently, the system consists of a computer and related hardware, cash drawers**,** card swipes, fingerprint sensors, credit card modems, caller ID, Speedline's software, and other hardware and software we specify. We may change the computer/point of sale system at any time. In connection with Speedline's software, you must sign various software license agreements, software purchase agreement, and other related agreements (collectively, the "Speedline Agreements"). The current forms of the Speedline Agreements are attached hereto as Exhibit I; however, the Speedline Agreements may be revised by Speedline at any time. Our affiliates have used versions of Speedline's software in connection with the operation of their affiliate-owned Beggars Pizza® Restaurants since October 2002.
We estimate that your cost to purchase the computer/point of sale system and software is between $35,000 and $75,000 depending on the size of the Restaurant. Acceptable hardware is available from numerous manufacturers and may be purchased from any source.
We have no proprietary interest in any software. Support and upgrades are currently provided by Speedline, and you are required to use Speedline's services. Currently, the cost for support services and updates from Speedline and the credit card processing service used by Speedline is approximately $175 per month, which may be subject to future increases. You must maintain, upgrade, and update the computer system/point of sale as we require. The Franchise Agreement does not restrict the frequency or expense of required upgrades and maintenance.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees must participate in any online, electronic, or centralized ordering programs that Beggars Pizza develops. This participation may include the purchase of special hardware, software, fixtures, or equipment, and these purchases are at the franchisee's expense.
Beggars Pizza also requires franchisees to purchase and use a specified computer/point of sale system. The current system includes a computer and related hardware, cash drawers, card swipes, fingerprint sensors, credit card modems, caller ID, Speedline's software, and other hardware and software that Beggars Pizza specifies. Beggars Pizza can change this system at any time. The estimated cost for this computer/point of sale system and software ranges from $35,000 to $75,000, depending on the restaurant's size.
Franchisees must also sign various agreements related to Speedline's software. Support and upgrades are provided by Speedline, and franchisees are required to use Speedline's services. The current cost for support services, updates, and the credit card processing service is approximately $175 per month, but this is subject to change. Franchisees are responsible for maintaining, upgrading, and updating the computer system as required by Beggars Pizza, and the Franchise Agreement does not limit the frequency or expense of these upgrades and maintenance.