What is the significance of 'Proprietary Marks' for Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
LLC, an Illinois limited liability company located at | | | | | | | | | 12949 South California Avenue, Blue Island, Illinois 60406 ("Franchisor"); and | | | | | | | | | , a | | | | | | | | | located at | | | | ("Franchisee"). | | | |
WITNESSETH:
WHEREAS, Franchisor, as the result of the expenditure of time, skill, effort, and money, has developed, and continues to develop, a distinctive system relating to the establishment, operation, and promotion of Beggars Pizza® restaurants that offer pizza, other food products, and non-alcoholic and alcoholic beverages for sale and consumption on the premises, for carry-out sale to customers, for consumption off the premises, for delivery to customers, for catering, for sale and consumption off the premises at temporary locations for fundraising and other special events, and sales in such other ways as Franchisor may specify from time to time, all of which may be changed, improved, and further developed by Franchisor from time to time (the "System");
WHEREAS, the distinguishing characteristics of the System include, without limitation, distinctive exterior and interior design, décor, color scheme, fixtures, and furnishings; standards and specifications for products and supplies; uniform standards, specifications, and procedures for operations; procedures for screening, recruiting and training personnel; payroll and bookkeeping procedures and policies; training and assistance; marketing methods; and advertising and promotional programs; all of which may be changed, improved and further developed by Franchisor from time to time;
WHEREAS, the System is identified by means of certain trade names, service marks, trademarks, trade dress, logos, emblems, and indicia of origin including, without limitation, the mark "Beggars Pizza®" and mark "Beggars Pizza (plus logo)" as are now designated and may hereafter be designated by Franchisor in writing for use in connection with the System (the "Proprietary Marks");
WHEREAS, Franchisor has developed and sells through its affiliate, Begcom LLC ("Begcom"), certain trade secret food ingredients for use in the System including, without limitation, pizza dough, spaghetti and pizza sauces, sausage, and secret spice blends, and may develop additional trade secret food ingredients during the term hereof from time to time;
WHEREAS, Franchisee desires to enter into the business of operating a Beggars Pizza® restaurant under the System and Proprietary Marks, and wishes to enter into an agreement with Franchisor for that purpose, and to receive the training and other assistance provided by Franchisor in connection therewith; and
WHEREAS, Franchisee understands and acknowledges the importance of Franchisor's high standards of quality, cleanliness, appearances, and service and the necessity of operating the business franchised hereunder in conformity with Franchisor's standards and specifications.
NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:
1. GRANT
- 1.1 Grant of Franchise. Franchisor grants to Franchisee the right and Franchisee undertakes the obligation, upon the express terms and conditions set forth in the Agreement, to establish and operate a Beggars Pizza® restaurant under the Proprietary Marks and System (the "Restaurant") and to use the Proprietary Marks and the System, as they may be changed and improved from time to time at Franchisor's sole discretion, solely in connection therewith.Approved Location. Franchisee must operate the Restaurant only at the location identified in Exhibit A (the "Approved Location"). If, at the time of execution of the Agreement, a location for the Restaurant has not been obtained by Franchisee and approved by Franchisor, Franchisee must lease or acquire a location within ninety (90) days after the date of the Agreement, subject to Franchisor's approval, as provided for in the Site Selection Addendum attached hereto as Exhibit B. Franchisee will not relocate the Restaurant without the prior written approval of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the 'Proprietary Marks' are critical to the franchise system. These marks, including the name "Beggars Pizza®" and the Beggars Pizza logo, identify and distinguish the Beggars Pizza system. APG Enterprises, Inc. owns the rights to these marks and licenses their use to Beggars Pizza, who in turn licenses them to franchisees.
As a franchisee, you are granted the right to operate a Beggars Pizza restaurant under these Proprietary Marks, but only at an approved location. You must use the marks as authorized by Beggars Pizza and identify yourself as the owner of the restaurant in conjunction with any use of the marks. Unauthorized use of these marks constitutes an infringement of the Trademark Owner's rights, which could lead to legal repercussions.
Upon termination or expiration of the franchise agreement, your right to use the Proprietary Marks immediately ceases. You must discontinue using all confidential methods, procedures, and techniques associated with the Beggars Pizza system, including the Proprietary Marks. Additionally, you must cancel any assumed name registrations containing the "Beggars Pizza®" mark or any other Proprietary Marks. Beggars Pizza also retains the right to modify, add to, or discontinue the use of the Proprietary Marks, and franchisees are obligated to comply with these changes, bearing the costs of updating signage and advertising materials accordingly. The goodwill associated with the Proprietary Marks benefits the Trademark Owner, not the franchisee.