Does Beggars Pizza have sole discretion in determining if the consideration offered by a proposed transferee is reasonable?

According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza does not have sole discretion in determining if the consideration offered by a proposed transferee is reasonable. While Beggars Pizza will not unreasonably withhold its consent to a transfer, it may require certain conditions to be met for approval.

One of these conditions is that "the consideration or payment terms offered by a proposed transferee are not excessive or unreasonable, based on the gross revenues of the Restaurant and sale prices of other Beggars Pizza® restaurants in the System in Franchisor's reasonable business judgment." This indicates that Beggars Pizza will assess the reasonableness of the consideration based on objective factors such as gross revenues and sale prices of other restaurants in the system, rather than solely on its own discretion.

This is a fairly standard practice in franchising, as franchisors typically want to ensure that the terms of a transfer are fair and reasonable to all parties involved. This condition protects the integrity of the Beggars Pizza brand and the interests of other franchisees by preventing transfers based on inflated or unsustainable valuations. A prospective franchisee should understand these conditions and how they might affect a future sale of their franchise.