factual

What rights does Beggars Pizza reserve to itself inside and outside of a Beggars Pizza franchisee's territory?

Beggars_Pizza Franchise · 2025 FDD

Answer 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 Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza retains significant rights both inside and outside a franchisee's designated territory. Beggars Pizza will not open or operate, or license others to do so, a Beggars Pizza Restaurant in a franchisee's territory, except as explicitly provided in Item 12 of the Franchise Agreement. Beggars Pizza maintains all rights not expressly granted to the franchisee.

Specifically, Beggars Pizza has the exclusive and unrestricted right to establish and operate (or license others to do so) Beggars Pizza Restaurants outside the franchisee's territory. They can also accept and fulfill delivery orders within a franchisee's territory, and allow other franchisees to do the same. Beggars Pizza can establish restaurants within the franchisee's territory at locations such as shopping malls, airports, transportation terminals, entertainment facilities, and highway rest stops. They can also sell or license the sale of similar products outside of Beggars Pizza restaurants, such as in supermarkets or online, regardless of location.

Furthermore, Beggars Pizza reserves the right to acquire and operate any business under different trademarks, regardless of location, and to affiliate with other businesses, even those offering similar products or using the Proprietary Marks, both within and outside the franchisee's territory. Beggars Pizza is not obligated to compensate franchisees for soliciting or accepting orders from customers within their territory. These stipulations mean that a Beggars Pizza franchisee's territory is not completely exclusive, and they may face competition from the franchisor itself or other franchisees within their own territory.

Beggars Pizza franchisees are required to provide delivery service to customers within their territory, adhering to Beggars Pizza's delivery standards. While franchisees can accept orders and provide delivery service outside their territory (excluding specific areas defined in the Franchise Agreement), they are restricted from distributing hard copy advertisements outside their territory. Digital advertising is not subject to this restriction. The continuation of a franchisee's location rights does not depend on sales volume or market penetration. Franchisees do not have the right to acquire additional franchises automatically but can apply for the right to operate additional Beggars Pizza Restaurants under separate agreements.

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.