What is the significance of Franchisor's approval of a site for a Beggars Pizza restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ations and warranties in this Section 26.4 incorrect.
- 26.5 Site Approval. Franchisee hereby acknowledges and agrees that Franchisor's approval of a site does not constitute an express or implied assurance, representation, or warranty of any kind of the suitability of the site for the Restaurant or any other purpose. Franchisor's approval of a site indicates only that Franchisor believes the site complies with acceptable minimum criteria established by Franchisor solely for its purposes as of the time of the evaluation. Both Franchisee and Franchisor acknowledge that application of criteria that may have been
effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to Franchisor's approval of a site, demographic, and/or economic factors, such as competition from other similar businesses, included in or excluded from Franchisor's criteria could change, thereby altering the potential of a site or lease. Such factors are unpredictable and are beyond Franchisor's control.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor's approval of a site indicates only that Beggars Pizza believes the location meets the minimum criteria they have established. This evaluation is solely for Beggars Pizza's purposes at the time of assessment. The approval does not constitute a warranty or guarantee of the site's suitability or potential for success.
Beggars Pizza and the franchisee both acknowledge that the criteria used for site selection may not accurately predict the potential of all locations. Demographic and economic factors can change after the approval, impacting the site's viability. These factors are often unpredictable and beyond Beggars Pizza's control. Therefore, Beggars Pizza will not be held responsible if an approved site fails to meet the franchisee's expectations regarding revenue or operational performance.
The FDD emphasizes that the franchisee is responsible for conducting their own independent investigation to determine if the site is suitable for their Beggars Pizza restaurant. The franchisee's decision to accept the franchise and operate at the approved location should be based on their own due diligence and assessment of the site's potential. This means that while Beggars Pizza offers site selection guidelines and consultation, the ultimate responsibility for choosing a viable location rests with the franchisee.