Does Beggars Pizza have sole discretion in requiring any conditions to be met prior to renewal?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| This BEGGARS PIZZA FRANCHISE, LLC FRANCHISE AGREEMENT RENEWAL | ||
|---|---|---|
| ADDENDUM (the "Addendum") is made and entered into on, 20, by and between Beggars Pizza Franchise, LLC, formerly known as Beggars Pizza Franchise Corporation, an Illinois corporation located at 12949 South California Avenue, Blue Island, | ||
| Illinois 60406 ("Franchisor"); and | , a | |
| located at | WITNESSETH: | ("Franchisee"). WHEREAS, Franchisee currently operates a Beggars Pizza® restaurant located at: |
| Franchisee dated | , 20 | (the "Restaurant") pursuant to a prior franchise agreement entered into between Franchisor and (the "Prior Agreement"); |
| Franchise, LLC Franchise Agreement dated Agreement; and | WHEREAS, Franchisor and Franchisee have entered into that certain Beggars Pizza , 20 (the "Franchise Agreement") for the purpose of renewing Franchisee's rights granted under the Prior | |
| Agreement as set forth herein. | WHEREAS, Franchisor and Franchisee desire to amend the terms of the Franchise | |
| hereby acknowledged, the parties, intending to be legally bound, agree as follows: | 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 | |
| 1. | The fifth WHEREAS clause on Page 1 of the Franchise Agreement is hereby | |
| deleted in its entirety and replaced with the following language: | ||
| restaurant; | WHEREAS, Franchisee has operated a Beggars Pizza® restaurant under Franchisor's System and Proprietary Marks under a franchise agreement, and wishes to enter into a renewal franchise agreement with Franchisor to continue to operate such | |
| 2. | Section 1.2 of the Franchise Agreement is hereby deleted in its entirety and | |
| replaced with the following: | ||
| 1.2 not relocate the | Restaurant without Franchisor may withhold approval of relocation in its sole discretion. | Approved Location. Franchisee will operate the Restaurant only at the location identified in Exhibit A (the "Approved Location"). Franchisee will Franchisor's prior written approval. |
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
The 2025 Beggars Pizza Franchise Disclosure Document states that the franchisor and franchisee have entered into an addendum for the purpose of renewing the franchisee's rights under the prior agreement. While the document outlines conditions that Beggars Pizza may require for transfer of a franchise, it does not explicitly state whether Beggars Pizza has sole discretion in requiring specific conditions to be met for franchise renewal.
However, the Franchise Agreement Addendum included in the FDD does state that Beggars Pizza may withhold approval of relocation in its sole discretion. This indicates that Beggars Pizza retains some level of discretionary power in certain aspects of the franchise agreement.
To fully understand the conditions and requirements for renewal, a prospective franchisee should ask Beggars Pizza for a comprehensive list of conditions that must be met for renewal and clarification on whether these conditions are subject to change at Beggars Pizza's discretion.