How is the Beggars Pizza Territory defined?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a territory (a "Territory") that will be described in Exhibit A of your Franchise Agreement. Your Territory will be determined by us in our sole discretion as we consider appropriate under the circumstances and will generally be a geographic area described by attaching a map, or by reference to streets, natural boundaries, or ZIP codes. We may permit you to operate a temporary cart or kiosk at a temporary location in your Territory used for fund raising and other special events.
Source: Item 12 — TERRITORY (FDD pages 26–28)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. The territory, referred to as "Territory", will be defined in Exhibit A of the Franchise Agreement. Beggars Pizza determines the territory at its sole discretion, considering the circumstances.
The territory is generally a geographic area described by attaching a map, or by referencing streets, natural boundaries, or ZIP codes. Beggars Pizza retains significant rights within and outside the franchisee's territory, including the right to establish other Beggars Pizza restaurants in locations such as shopping malls, airports, transportation terminals, entertainment facilities, and rest stops. They also reserve the right to sell products similar to those offered under the Beggars Pizza system through other channels, such as supermarkets and online platforms, without compensating the franchisee.
Beggars Pizza also permits franchisees to operate temporary carts or kiosks within their territory for fundraising and special events. While franchisees must provide delivery service within their territory, these rights are not exclusive, and other Beggars Pizza restaurants may also provide delivery services in the same area. Franchisees can deliver outside their territory, except for hard copy advertising restrictions. The continuation of location rights does not depend on sales volume or market penetration.
Prospective franchisees should carefully review Exhibit A of the Franchise Agreement to understand the specific geographic boundaries of their territory and the potential for competition from other franchisees and alternative distribution channels. It is important to discuss territory details and expectations with Beggars Pizza during the due diligence process.