When does the risk of loss or damage transfer to the Beggars Pizza customer for SpeedLine equipment?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the risk of loss or damage to SpeedLine equipment transfers to the customer upon delivery of the equipment and implemented software to the common carrier. This means that once SpeedLine hands over the equipment to a shipping company for delivery to the Beggars Pizza franchisee, the franchisee assumes the risk of any loss or damage that may occur during transit.

However, the title to the equipment, but not the software, transfers to the customer later. Specifically, the title passes on the later of two events: either when the equipment is delivered to the common carrier or when the customer has paid all amounts owed for the equipment. This distinction means that while the franchisee bears the risk of loss during shipping, SpeedLine retains ownership of the equipment until full payment is received.

This arrangement is fairly standard in franchise agreements involving equipment purchases. It is important for a prospective Beggars Pizza franchisee to understand that they should ensure the shipment upon arrival and file any claims for damage or loss directly with the carrier. Additionally, the franchisee should confirm the payment terms to understand when they will officially own the SpeedLine equipment.