What section of the Beggars Pizza franchise agreement discusses renewal or extension of the term?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION]
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the term of the franchise | 2.1. | Ten years. |
| b. Renewal or extension of the term | 2.2. | You have the right to renew for one additional ten-year term if certain conditions are met. |
| c. Requirements to renew or extend | 2.2. | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the renewal or extension of the franchise term is addressed in Section 2.2 of the franchise agreement. The initial term of a Beggars Pizza franchise is ten years, as detailed in Section 2.1. Franchisees have the option to renew for one additional ten-year term if they meet specific requirements.
The requirements for renewal, as outlined in Section 2.2, include providing timely written notice of the intent to renew. Additionally, franchisees must complete all necessary maintenance, refurbishing, renovation, and remodeling of the restaurant, including equipment, fixtures, furnishings, and interior and exterior signage, to align with the current Beggars Pizza image. Compliance with the existing Franchise Agreement is essential, along with fulfilling all monetary obligations to Beggars Pizza, its affiliates, and trade creditors.
Further conditions for renewal involve presenting evidence of the ability to maintain possession of the restaurant premises for the renewal term. Franchisees must also execute the then-current form of the Franchise Agreement, which may contain materially different terms and conditions compared to the initial agreement. A general release from the franchisee and their owners is required, along with compliance with Beggars Pizza's then-current qualification and training requirements. Finally, the franchisee must pay a renewal fee to finalize the renewal process.