Can the supplier adjust the product prices for my Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The current purchase price (the "Price") for each Product charged by Supplier and paid by Franchisee as of the Agreement Date is set forth in Exhibit A.
Supplier may make reasonable adjustments in the Prices upon notice to Franchisee from time to time in writing or in the Manual; provided, however, that Supplier will have no such obligation for such products sold hereunder (as determined by Supplier) for which there are frequent wholesale price fluctuations.
Said Prices will include all applicable federal, state, and local taxes and transportation fees.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the supplier, BEGCOM, LLC, can make adjustments to product prices. The current purchase price for each product charged by the Supplier and paid by the Franchisee as of the Agreement Date is set forth in Exhibit A. The supplier may make reasonable adjustments to these prices upon written notice to the franchisee or in the Manual. However, the supplier has no obligation to provide notice for products with frequent wholesale price fluctuations. These prices include all applicable federal, state, and local taxes and transportation fees.
This means that as a Beggars Pizza franchisee, you should anticipate potential changes in the cost of goods. While the supplier is expected to provide notice for price adjustments, this may not always be the case for items subject to frequent market changes. It is important to regularly review supplier communications and the Beggars Pizza operations manual for updates on product pricing.
As a franchisee, it's crucial to factor in potential price fluctuations when budgeting and setting menu prices. Failure to account for these changes could impact profitability. Maintaining open communication with the supplier and staying informed about market trends can help mitigate the risks associated with price adjustments. Franchisees should clarify with Beggars Pizza and the supplier what constitutes a 'reasonable adjustment' and how frequently prices are likely to change for key ingredients.