How did the royalty receivables for Beggars Pizza change in 2023?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the company's royalty revenue experienced an increase in 2023. Specifically, royalty revenue for the year ended December 31, 2023, amounted to $1,561,237. In comparison, the royalty revenue for the year ended December 31, 2022, was $1,475,563. This indicates an increase in royalty revenue of $85,674 from 2022 to 2023.

This increase in royalty revenue suggests a potential growth in sales across Beggars Pizza franchises or possibly the addition of new franchise locations. Royalties are a crucial revenue stream for the franchisor, as they are typically calculated as a percentage of gross sales. For Beggars Pizza, the royalty is 5 percent of gross sales or $500 per month, whichever is higher.

For a prospective franchisee, this information is relevant as it provides insight into the financial health and performance of the franchise system. A growing royalty revenue base can be a positive indicator, suggesting that franchisees are generating more sales. However, it is important to also consider the number of open franchises during these periods, as an increase in the number of locations would naturally contribute to higher overall royalty revenue. Beggars Pizza had 20 franchises open as of December 31, 2023, and 19 as of December 31, 2022.