Is Beggars Pizza required to purchase trade secret items from Begcom or other designated suppliers?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has developed certain proprietary, confidential and trade secret recipes that are part of the System including, without limitation, pizza dough, spaghetti and pizza sauces, sausage, and secret spice blends, and may develop additional such recipes and products from time to time.
Franchisor sells such products through Begcom or other designated suppliers.
Franchisee acknowledges and agrees that such items are essential to the operation of the Restaurant.
Begcom is the designated supplier of certain additional food items and supplies (including, without limitation, cheeses, sausages, and paper products), some of which bear the Proprietary Marks and some of which do not bear the Proprietary Marks, and Franchisor may from time to time specify in the Manual or otherwise in writing certain other parties that will be designated suppliers for specified products, materials, supplies, paper goods, fixtures, furnishings and equipment used or sold at the Restaurant.
Franchisee acknowledges and agrees that it must purchase such items from Begcom or such other designated suppliers in order to assure the uniform quality and image associated with the Restaurant.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to purchase certain proprietary and trade secret items from Begcom or other suppliers designated by Beggars Pizza. These items are essential to maintaining the uniformity and quality associated with the Beggars Pizza brand. These trade secret items include pizza dough, spaghetti and pizza sauces, sausage, and secret spice blends. Begcom is identified as the designated supplier for additional food items and supplies such as cheeses, sausages, and paper products.
This requirement ensures that all Beggars Pizza restaurants maintain consistent product quality and adhere to the brand's standards. Franchisees must enter into Begcom's commissary agreement for the purchase of designated products. Beggars Pizza can specify other parties as designated suppliers for specified products, materials, supplies, paper goods, fixtures, furnishings, and equipment used or sold at the restaurant.
Beggars Pizza can suspend or refuse shipment of additional products if a franchisee fails to make payments to Beggars Pizza, its designee, or Begcom. They can also require cash-on-delivery payments for future shipments. This obligation is further reinforced by the requirement that the franchisee's principals and their spouses must sign a guarantee, indemnification, and acknowledgment, ensuring all obligations under the Franchise Agreement and Commissary Agreement are fulfilled.