Does Beggars Pizza have the right to approve other suppliers during the term of the agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby appoints Supplier as a supplier of the Products, and Supplier hereby accepts such appointment subject to the terms and conditions set forth below. Supplier and Franchisee acknowledge and agree that this is a non-exclusive appointment and that during the Term (as defined below) other suppliers may or could be retained to perform the same or similar duties if such suppliers are approved by Beggars in accordance with the terms of the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, Beggars Pizza retains the right to approve other suppliers during the term of the franchise agreement. The agreement between the franchisee and the supplier is non-exclusive. This means that Beggars Pizza can retain other suppliers to perform the same or similar duties, provided that Beggars Pizza approves these suppliers according to the terms of the Franchise Agreement.
This provision gives Beggars Pizza flexibility in managing its supply chain and ensuring consistent product quality across all franchise locations. For a prospective franchisee, this means that while they are initially required to purchase products from a designated supplier, there is a possibility of alternative suppliers being approved by Beggars Pizza during the term of their agreement. This could potentially lead to changes in product costs, delivery schedules, or product quality, depending on the terms negotiated with any new suppliers.
It is important for a potential Beggars Pizza franchisee to understand the criteria and process Beggars Pizza uses for approving new suppliers. This information would allow the franchisee to anticipate potential changes in suppliers and assess the impact on their business operations. Furthermore, franchisees should inquire about the frequency with which Beggars Pizza reviews and approves suppliers to better understand the potential for changes during their franchise term.