Is there an additional cost for the Beggars Pizza franchisee to use the data licensed back to them?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
install such additions, changes, modifications, substitutions, and/or replacements to
the Computer System or Required Software as Franchisor directs from time to time in writing. Franchisee's compliance with this Section 8.4 will be at Franchisee's sole cost and expense.
- 8.5 Data. All data provided by Franchisee, uploaded to Franchisor's system from Franchisee's system, downloaded from Franchisee's system to Franchisor's system, and/or obtained electronically or otherwise from Franchisee by Franchisor, is and will be owned exclusively by Franchisor, and Franchisor may use such data in any manner that Franchisor deems appropriate without compensation to Franchisee. In addition, all other data created or collected by Franchisee in connection with the System, or in connection with Franchisee's operation of the Restaurant (including, without limitation, consumer and transaction data), is and will be owned exclusively by Franchisor during the term of, and following termination or expiration of, the Agreement. Copies and/or originals of such data must be provided to Franchisor upon Franchisor's request. Franchisor hereby licenses use of such data back to Franchisee, at no additional cost, solely for the term of the Agreement and solely for Franchisee's use in connection with the establishment and operation of the Restaurant pursuant to the Agreement.
- 8.6 Privacy.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor licenses the use of data back to the franchisee at no additional cost. This data includes information provided by the franchisee, uploaded to or downloaded from Beggars Pizza's systems, or obtained electronically. Beggars Pizza owns all data created or collected by the franchisee in connection with the system or the restaurant's operation, including consumer and transaction data.
This license is valid only for the term of the Franchise Agreement and solely for the franchisee's use in operating the Beggars Pizza restaurant. The franchisee must provide copies or originals of such data to Beggars Pizza upon request. Beggars Pizza also grants a royalty-free, nonexclusive license to the franchisee to use data pertaining to the restaurant, including customer data, during the agreement term.
This arrangement allows Beggars Pizza to maintain control over valuable data generated by the franchise system while enabling franchisees to utilize this data for their local restaurant operations without incurring extra fees. However, upon termination or expiration of the Franchise Agreement, the franchisee's right to use this data also terminates, which is a standard practice in franchising to protect the brand's proprietary information.