Can the supplier change the Accounting Period for my Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
At the start of each Accounting Period (as defined below), Supplier will provide Franchisee with an invoice (the "Invoice") containing all current amounts due for all Products purchased during the prior Accounting Period. "Accounting Period" means every seven (7) days beginning on Monday and ending on Sunday.
Each Monday Franchisee must pay to Supplier all amounts due to Supplier for the previous Monday through Sunday (i.e., the previous Accounting Period) via electronic funds transfer ("EFT") as set forth in Section 3(d) below.
Supplier hereby expressly reserves the right to designate such other period (which may include a shorter period) as the Accounting Period that Supplier or Beggars may specify in the Manual or in writing from time to time.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the supplier has the right to change the accounting period. The standard accounting period is every seven days, beginning on Monday and ending on Sunday. Franchisees are invoiced at the start of each accounting period for products purchased in the prior period and must pay the supplier each Monday via electronic funds transfer for the previous Monday through Sunday period.
However, the Beggars Pizza supplier expressly reserves the right to designate another period as the accounting period. This new period may include a shorter duration than the standard seven days. The supplier can specify this change in the Beggars confidential operations manual or in writing to the franchisee.
This means that Beggars Pizza franchisees need to be prepared for potential changes to the payment schedule for product purchases. While the standard is a weekly payment, the supplier has the flexibility to require more frequent payments, which could impact the franchisee's cash flow management. It is important for prospective franchisees to understand this provision and factor it into their financial planning.