Who is responsible for the expense of advertising and promotional materials made available by Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We may periodically make available to you approved advertising and promotional materials including merchandising materials, point-of-purchase materials, and materials for special promotions at your expense. (Franchise Agreement, Section 12.6.)
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 are responsible for the expense of advertising and promotional materials made available to them by Beggars Pizza. Specifically, Beggars Pizza may periodically provide approved advertising and promotional materials such as merchandising and point-of-purchase materials, as well as materials for special promotions, but the franchisee must pay for these materials.
This means that while Beggars Pizza controls and approves all advertising and promotional content, the franchisee bears the cost of accessing and utilizing these materials for their local restaurant. This is a common arrangement in franchising, where the franchisor manages brand consistency and marketing strategy, while the franchisee invests in local advertising efforts.
In addition to these direct costs, franchisees must also contribute to the Brand Fund, which is used for broader advertising, marketing, and promotional programs. The franchisee pays a weekly fee of 1% of their gross sales to the Brand Fund. This contribution is separate from the franchisee's responsibility to pay for approved advertising and promotional materials made available to them. The Brand Fund is used for various activities, including media placement, sponsorships, production, and administrative expenses, all aimed at enhancing the image of the Beggars Pizza system.