factual

After termination or expiration of a Beggars Pizza franchise, what geographic areas are included in the non-competition covenant?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in Franchise Agreement Summary
o. Franchisor's option to purchase franchisee's business 16.4, 16.5, and 16.11. We may require you to assign your lease and/or telephone numbers to us upon the termination or expiration of your Franchise Agreement. We have the option to purchase the assets of the Restaurant from you within 30 days of the termination or expiration of your Franchise Agreement including your equipment, furnishings, and signage.
p. Death or disability of franchisee 14.6. Upon the death or physical or mental incapacity of any person with an interest in your Franchise Agreement, you, or all or substantially all of the assets of the Restaurant, the executor, administrator, or personal representative of such person must transfer the interest to a third party approved by us within six months subject to the same conditions as any other transfer.
q. Non-competition covenants during the term of the franchise 17.2. You may not own or have any interest in any business that offers pizza, pizza products, Italian-style food, or other similar food items during the term of your Franchise Agreement.
r. Non-competition covenants after the franchise is terminated or expires 17.3. You may not own or have any interest in any business that offers pizza, pizza products, Italian-style food, or other similar food items for two years after expiration or termination of your Franchise Agreement within (a) your Territory, (b) ten miles of the location of the Restaurant, or (c) ten miles of the location of any business operating under the Proprietary Marks.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

What This Means (2025 FDD)

According to the 2025 Beggars Pizza Franchise Disclosure Document, if the franchise agreement is terminated or expires, the franchisee is subject to a non-competition covenant. This covenant restricts the franchisee from owning or having any interest in a business that offers pizza, pizza products, Italian-style food, or other similar food items for a period of two years.

The geographic scope of this restriction includes three specific areas. First, the franchisee is restricted within their previously assigned territory. Second, the restriction extends to a ten-mile radius from the location of the former Beggars Pizza restaurant. Finally, the non-competition covenant also applies within a ten-mile radius of any business operating under Beggars Pizza's proprietary marks.

This non-competition agreement aims to protect Beggars Pizza's market share and brand recognition by preventing former franchisees from directly competing with the franchise shortly after their departure. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities should they decide to leave the Beggars Pizza system.

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.