Does Beggars Pizza reserve any rights inside or outside a franchisee's territory?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of your Franchise Agreement, we will not open or operate, or license others to own or operate, a Beggars Pizza® Restaurant in your Territory except as provided in this Item 12. We reserve all rights inside and outside the Territory except those we expressly grant in your Franchise Agreement including the exclusive, unrestricted right, in our sole and absolute discretion, to directly or indirectly (a) establish and operate, and license others to establish and operate, a Beggars Pizza® Restaurant under the System and the Proprietary Marks at any location outside of your Territory, (b) accept delivery orders and deliver, and allow other franchisees to accept delivery orders and deliver, any products (including products sold at the Restaurant) in your Territory, (c) establish and operate, and license other parties to establish and operate, Beggars Pizza® Restaurants under the System and Proprietary Marks in your Territory at any existing or future (i) shopping malls, (ii) airports, (iii) bus and train depots and other transportation terminals, (iv) entertainment facilities (including sports stadiums) and theme parks, and (v) rest stops, plazas and similar locations accessible from limited access highways, (d) sell or distribute, or license others to sell or distribute, products that are the same as or similar to those offered under the System, and any other products or services at any location other than at a Beggars Pizza® Restaurant (regardless of proximity to the Restaurant) whether within or outside of your Territory under the same or different Proprietary Marks including sales made at supermarkets, convenience stores, markets, and grocery stores, and over the Internet and/or other on-line networks and other communications methods, (e) acquire and operate any business of any kind under different proprietary marks at any location (regardless of proximity to the Restaurant) whether located within or outside of your Territory, and (f) acquire, merge with, or otherwise affiliate with, and then own and operate, and franchise or license others to own and operate, any business of any kind including any business that offers products similar to those offered under the System or that uses the Proprietary Marks or any other system or marks within or outside of your Territory. We have no current plans to operate a business under a different trademark that will provide goods and
services similar to those that you offer; however, we may do so in the future. We are not required to compensate you for soliciting or accepting orders from customers in your Territory.
You must provide delivery service of all approved menu items to customers located in your Territory. Delivery service must be made in accordance with our then-current delivery standards as described in the Manuals. Your delivery rights are not exclusive, and other Beggars Pizza® Restaurants may accept delivery orders and provide delivery services in your Territory. In addition, you may accept orders and provide delivery service of approved menu items outside of your Territory (except in the specific geographic areas specified in your Franchise Agreement) provided that you refrain from mailing or delivering, or directing any third party from mailing or delivering, by any means, any hard copy print advertising, door hangers, hand-out advertisements, coupons, mailers, or other hard copy advertisements to business and residential addresses outside of your Territory. Any hard copy advertisement in a newspaper or any other advertising by television, radio, the Internet, or any other print or electronic medium will not be subject to this territorial restriction. You do not have the right to use other channels of distribution such as the Internet, telemarketing, or other direct marketing to make sales outside of your Territory unless permitted by us in the Manuals or otherwise in writing.
Source: Item 12 — TERRITORY (FDD pages 26–28)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, Beggars Pizza retains significant rights both inside and outside a franchisee's designated territory. While franchisees are protected from the direct operation or licensing of another Beggars Pizza restaurant within their territory during the franchise term, this protection has several exceptions.
Beggars Pizza explicitly reserves the right to establish or license Beggars Pizza restaurants in various locations within a franchisee's territory, including shopping malls, airports, transportation terminals, entertainment facilities like sports stadiums and theme parks, and highway rest stops. Beggars Pizza also retains the right to accept and fulfill delivery orders within a franchisee's territory, and allow other franchisees to do the same, meaning a franchisee's delivery area is not exclusive.
Furthermore, Beggars Pizza reserves the right to sell or license the sale of products similar to those offered in Beggars Pizza restaurants through alternative channels such as supermarkets, convenience stores, and online platforms, regardless of their proximity to a franchisee's restaurant and whether inside or outside the territory. Beggars Pizza can also operate any kind of business under different trademarks, or affiliate with businesses that offer similar products, without compensating the franchisee. These retained rights could create competition for the franchisee and impact their potential revenue.
A Beggars Pizza franchisee must provide delivery service to customers in their territory according to Beggars Pizza's standards, but these delivery rights are not exclusive. Franchisees can deliver outside their territory unless restricted by the Franchise Agreement, but cannot engage in hard copy advertising outside their territory. These stipulations highlight the importance of a prospective franchisee understanding the full scope of the territory and the potential for competition from both Beggars Pizza itself and other franchisees.