What is the significance of 'time is of the essence' in the Beggars Pizza Site Selection Addendum?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Failure by Franchisee to obtain premises for the Restaurant within the time required in Paragraph 1 hereof will constitute a default under the Agreement and this Site Selection Addendum. Time is of the essence.
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- Franchisor will not establish, nor franchise another to establish, a Beggars Pizza® restaurant within the Site Selection Territory until Franchisor approves a location for the Restaurant or until the time set forth in Paragraph 1 expires, whichever event first occurs.
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- Prior to Franchisee's acquisition by lease or purchase of a site for the Restaurant, Franchisee must submit to Franchisor, in the form specified by Franchisor, a completed site review form, such other information or materials as Franchisor may reasonably require, and a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the proposed site. Recognizing that time is of the essence, Franchisee must submit a proposed site, together with the information and materials required by this Paragraph 4, to Franchisor for its approval within sixty (60) days after execution of this Site Selection Addendum. Franchisor will have thirty (30) days after receipt of such information and materials from Franchisee to approve or disapprove the site as a location for the Restaurant in Franchisor's sole discretion. No proposed site will be deemed approved unless it has been expressly approved in writing by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the phrase 'time is of the essence' in the Site Selection Addendum emphasizes the critical importance of meeting deadlines during the site selection process. For a prospective franchisee, this means that any failure to secure premises for the restaurant within the specified timeframe constitutes a default under both the Franchise Agreement and the Site Selection Addendum. This clause underscores that Beggars Pizza places a high priority on the timely establishment of new franchise locations.
Specifically, the franchisee must submit a proposed site, along with all required information, to Beggars Pizza for approval within sixty (60) days after executing the Site Selection Addendum. Beggars Pizza then has thirty (30) days to either approve or disapprove the proposed site. The 'time is of the essence' provision means these deadlines are strictly enforced. Failure to meet these deadlines can result in a default, potentially jeopardizing the franchise agreement.
Beggars Pizza also commits to not establishing or franchising another restaurant within the franchisee's Site Selection Territory until a location is approved or the initial time period expires. This offers the franchisee a limited period of exclusivity while they secure a location. However, this protection is contingent on the franchisee's adherence to the set timelines. The franchisor's commitment is directly tied to the franchisee's diligence in meeting the deadlines outlined in the Site Selection Addendum. Therefore, prospective franchisees must be prepared to act quickly and efficiently during the site selection phase to maintain compliance and secure their desired location.