What sections in the Beggars Pizza franchise agreement address post-termination obligations?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of the Agreement, all rights granted hereunder to Franchisee will forthwith terminate, and:
- 16.1 Cease Operations. Franchisee must immediately cease to operate the Restaurant, and will not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor. Immediately upon the expiration or termination hereof, Franchisee must dispose of, and not sell, any proprietary or trade secret products sold hereunder including, without limitation, any products bearing the Proprietary Marks or contained in packaging bearing the Proprietary Marks.
- 16.2 Cease Use of Confidential Information and Marks. Franchisee must immediately and permanently cease to use, in any manner whatsoever, any confidential methods, procedures and techniques associated with the System; any Confidential Information; the Proprietary Mark "Beggars Pizza®" and all other Proprietary Marks and distinctive forms, slogans, signs, symbols, and devices associated with the System. In particular, Franchisee must cease to use, without limitation, all signs, advertising materials, displays, stationery, forms, products, and any other articles which display the Proprietary Marks.
- 16.3 Cancellation of Registrations. Franchisee must take such action as may be necessary to cancel any assumed name registration or equivalent registration obtained by Franchisee which contains the mark "Beggars Pizza®" or any other Proprietary Marks, and Franchisee must furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within five (5) days after termination or expiration of the Agreement.
- 16.4 Assignment of Lease. Franchisee must, at Franchisor's option, assign to Franchisor any interest which Franchisee has in any lease or sublease for the Premises. If Franchisor does not elect to exercise its option to acquire the lease or sublease for the Premises, Franchisee must make such modifications or alterations to the premises immediately upon termination or expiration of the Agreement as may be necessary to distinguish the appearance of the premises from that of the Restaurant under the System, and must make such specific additional changes thereto as Franchisor may reasonably request for that purpose. If Franchisee fails or refuses to comply with the requirements of this Section 16.4, Franchisor will have the right to enter upon the premises
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–19)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, section 16 of the franchise agreement outlines the obligations of the franchisee upon termination or expiration of the agreement. This section stipulates that all rights granted to the franchisee are immediately terminated.
Specifically, section 16.1 mandates that the franchisee must immediately cease operations of the Beggars Pizza restaurant and refrain from representing themselves as a current or former franchisee. Additionally, the franchisee is required to dispose of, rather than sell, any proprietary or trade secret products, including those bearing Beggars Pizza's proprietary marks or packaging.
Section 16.2 further requires the franchisee to permanently cease using any confidential methods, procedures, techniques, or information associated with the Beggars Pizza system, including the "Beggars Pizza®" trademark and all other proprietary marks. This includes discontinuing the use of all signs, advertising materials, displays, and products that display the proprietary marks. Section 16.3 requires the franchisee to cancel any assumed name registrations containing the "Beggars Pizza®" mark and provide evidence of compliance to Beggars Pizza within five days of termination or expiration. Finally, section 16.4 states that the franchisee must assign any lease or sublease for the premises to Beggars Pizza at Beggars Pizza's option. If Beggars Pizza does not exercise this option, the franchisee must modify the premises to distinguish its appearance from a Beggars Pizza restaurant, and Beggars Pizza has the right to enter the premises if the franchisee fails to comply.