What were the royalty revenues for Beggars Pizza for the years ended December 31, 2024 and 2023?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the company's royalty revenue for the year ended December 31, 2024, was $1,486,410, and for the year ended December 31, 2023, it was $1,561,237. Beggars Pizza records royalty revenue based on the higher of 5 percent of gross sales or $500 per month from each franchisee. This revenue is recognized over the term of the respective franchise agreement as the underlying sales occur.

For a prospective franchisee, this indicates the revenue Beggars Pizza earns from its franchisees through royalty payments. The royalty structure ensures a minimum income for Beggars Pizza, regardless of a franchisee's sales performance, while also allowing them to benefit from higher sales volumes. The decrease in royalty revenue from 2023 to 2024 could be due to various factors, such as decreased sales at existing locations or changes in the number of operating franchises.

It's important to note that franchisees also pay a marketing fee of 1% of their weekly sales directly to Beg Adv, LLC, and order commissary supplies through Begcom, LLC, which are affiliated entities. These additional fees contribute to the overall financial relationship between the franchisee and Beggars Pizza and its affiliates. Understanding these revenue streams helps potential franchisees assess the financial obligations and the franchisor's income sources.