factual

Who is responsible for shipping, handling, and insurance costs when Beggars Pizza purchases equipment from SpeedLine?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (c) All amounts owing by the Customer to SpeedLine hereunder which are not known at the time of signing the Agreement, including, but without limitation, costs of shipping and handling, and insurance during shipment and delivery of the equipment and on-premises implemented software, shall be invoiced by SpeedLine to the Customer, and shall be paid by the Customer to SpeedLine or as directed by SpeedLine in full by the due date indicated on the invoice, which will be issued based upon SpeedLine's then-current standard invoicing terms.

Source: Item 23 — RECEIPT (FDD pages 39–192)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisee, referred to as the "Customer" in the agreement with SpeedLine, is responsible for the costs of shipping, handling, and insurance during the shipment and delivery of equipment and on-premises implemented software. These costs, if not known at the time of signing the agreement, will be invoiced by SpeedLine to the franchisee. The franchisee is then obligated to pay SpeedLine in full by the due date indicated on the invoice, which will be issued based on SpeedLine's standard invoicing terms.

This means that when a Beggars Pizza franchisee purchases equipment or software from SpeedLine, they should anticipate additional expenses beyond the initial purchase price to cover the logistics of getting the equipment to their location and insuring it during transit. It is important for franchisees to factor these costs into their budget and cash flow projections. Franchisees should also clarify SpeedLine's invoicing terms to understand when and how these charges will be billed.

This arrangement is fairly standard in franchising, where franchisees typically bear the costs associated with acquiring and transporting necessary equipment. However, franchisees should carefully review the SpeedLine quote and agreement to understand the full scope of these potential charges and ensure they are comfortable with the payment terms. Understanding these responsibilities upfront can help avoid unexpected costs and ensure a smoother setup process for the Beggars Pizza franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.