What section of the Franchise Agreement regarding the Approved Location is deleted and replaced in the Beggars Pizza Franchise Agreement Renewal Addendum?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2. | | Section 1.2 of the Franchise Agreement is hereby deleted in its entirety and | replaced with the following: | | | | 1.2 not relocate the | Restaurant without Franchisor may withhold approval of relocation in its sole discretion. | Approved Location. Franchisee will operate the Restaurant only at the location identified in Exhibit A (the "Approved Location"). Franchisee will Franchisor's prior written approval. |
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Section 1.2 of the Franchise Agreement, which pertains to the Approved Location, is deleted in its entirety and replaced within the Franchise Agreement Renewal Addendum. The new section 1.2 stipulates that the franchisee must operate the restaurant only at the location identified in Exhibit A, referred to as the "Approved Location."
This section emphasizes that franchisees cannot relocate their Beggars Pizza restaurant without prior written approval from the franchisor, and the franchisor retains the sole discretion to withhold approval for relocation. This clause ensures that Beggars Pizza maintains control over the location of its franchises, which can be crucial for brand consistency and market strategy.
For a prospective Beggars Pizza franchisee, this means that the initial location approval is critical, and any future relocation plans will be subject to the franchisor's approval. Franchisees need to carefully consider the location's potential and negotiate favorable lease terms, as moving the restaurant later may not be possible without the franchisor's consent.