factual

What is the standard transfer fee for a Beggars Pizza franchise?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

of the transferee acceptable to Franchisor), or the transferee's manager (if transferee or transferee's principal will not manage the Restaurant), at the transferee's expense, completes any training programs then in effect upon such terms and conditions

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee who sells their franchise to a third party will generally need to pay a transfer fee. The standard transfer fee is $7,500. This fee is payable to Beggars Pizza. However, there is an exception: if the transfer is to a corporation formed by the franchisee for ownership convenience, the transfer fee is waived.

In addition to the transfer fee, Beggars Pizza has other conditions that must be met before a transfer is approved. These include satisfying all outstanding obligations to Beggars Pizza, not being in default of any agreements, ensuring the transferee meets Beggars Pizza's standards, and that the transferee completes any required training programs. The franchisor also assesses the reasonableness of the payment terms offered by the proposed transferee.

These conditions and the transfer fee impact a franchisee looking to sell their Beggars Pizza business. The $7,500 fee will reduce the proceeds from the sale. The various conditions ensure that the new owner is well-qualified and financially stable, which protects the Beggars Pizza brand. Franchisees should factor in these costs and requirements when planning an exit strategy.

It is typical in the franchise industry to have a transfer fee to cover the franchisor's administrative costs and to ensure that the new franchisee meets their standards. The fee amount can vary widely among different franchise systems. Franchisees should carefully review the transfer provisions in the franchise agreement to fully understand the requirements and costs associated with selling their franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.