Can the supplier designate a shorter 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.
Franchisee must pay for all Product sales within seven (7) days of receipt of each Invoice, which time period may be reduced in Supplier's sole discretion upon written notice to Franchisee.
All such payments must be made by direct deposit or EFT.
If Franchisee fails to pay any Invoice within such period, Supplier will provide Franchisee with notice of such failure and, upon receipt of such notice, Franchisee will have five (5) days to cure such failure.
If Franchisee fails to make all required payments within such five (5)-day cure period, Supplier will have the right to immediately terminate the Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the supplier has the right to modify the accounting period, potentially shortening it. The standard accounting period is every seven days, running from Monday to Sunday. Each Monday, the franchisee must pay the supplier for all products purchased during the previous accounting period via electronic funds transfer. However, the supplier expressly reserves the right to designate another period, which may include a shorter period, as the accounting period. This change can be specified in the manual or in writing from time to time by the supplier or Beggars Pizza.
Franchisees are required to pay for all product sales within seven days of receiving each invoice. This payment period can be reduced at the supplier's discretion with written notice to the franchisee. All payments must be made via direct deposit or EFT. If a franchisee fails to pay any invoice within the specified period, the supplier will provide notice of the failure, and the franchisee will have five days to correct the failure.
If the franchisee does not make the required payments within the five-day cure period, the supplier has the right to immediately terminate the agreement. This highlights the importance of maintaining timely payments to avoid potential disruptions to the Beggars Pizza franchise operation and possible termination of the franchise agreement.