Are there any agreements that limit Beggars Pizza's rights to use or license the Proprietary Marks?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
nvolving the Proprietary Marks.
There are no agreements currently in effect that significantly limit our rights to use or license the use of the Proprietary Marks in any manner material to the franchise. We know of no superior prior rights or infringing uses that could materially affect your use of the Proprietary Marks. However, an unrelated third party owns a registration for the URL www.beggars.com. Our principal website is www.beggarspizza.com.
You may use the Proprietary Marks only for the purpose of operating and advertising the Restaurant in accordance with our standards. You may not use the Proprietary Marks in your corporate name, and every use of the "Beggars" or "Beggars Pizza®" mark as a service mark, trade name, or other identifier of the Restaurant must be in conjunction with the suffix or other words or phrases more specifically identifying the Restaurant in the exact format that we prescribe. You must comply with our requirements and all requirements imposed by the jurisdiction in which you operate the Restaurant concerning fictitious name usage.
You may not display or use any of the Proprietary Marks in connection with any advertising or promotional materials that we have not previously approved for use. You must identify yourself as the owner of the Restaurant and as a System franchisee in conjunction with any use of the Proprietary Marks (including uses on invoices, order forms, receipts, and contracts). You must display a notice reflecting such information in the content and form at such conspicuous locations on the premises of the Restaurant, any delivery vehicle, or electronic media as we designate in writing. You will not use the Proprietary Marks to incur any obligation or indebtedness on our behalf.
You must promptly notify us of any suspected unauthorized use of the Proprietary Marks, any challenge to the validity of the Proprietary Marks, or any challenge to our ownership of or right to use and to license others to use the Proprietary Marks. We have the sole right to direct and control any administrative proceeding or litigation involving the Proprietary Marks including any settlement. We have the right, but not the obligation, to take action against uses by others that may constitute infringement of the Proprietary Marks. We will defend you against any third-party claim, suit, or demand arising out of your use of the Proprietary Marks in strict compliance with the Manuals. If we determine that you have used the Proprietary Marks in accordance with your Franchise Agreement in our sole discretion, we will bear the cost of your defense including the cost of any judgment or settlement;
Source: Item 13 — TRADEMARKS (FDD pages 28–30)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, there are currently no agreements that significantly limit their rights to use or license their proprietary marks in any manner material to the franchise. However, an unrelated third party owns a registration for the URL www.beggars.com, while Beggars Pizza's principal website is www.beggarspizza.com. This means that while Beggars Pizza has broad rights to use and license its trademarks, prospective franchisees should be aware of the separate domain name registration.
Beggars Pizza retains the right to designate new, modified, or replacement marks for franchisee use, requiring franchisees to adopt these changes at their own expense. This includes potentially conducting business under a different trade name. Franchisees must promptly notify Beggars Pizza of any suspected unauthorized use or challenges to the validity of the proprietary marks. Beggars Pizza has the sole right to control any legal proceedings involving the marks, including settlements.
Beggars Pizza will defend franchisees against third-party claims arising from the franchisee's use of the proprietary marks, provided the franchisee strictly complies with Beggars Pizza's manuals and franchise agreement. However, if Beggars Pizza determines that the franchisee has not used the marks in accordance with the franchise agreement, the franchisee will be responsible for the costs of their defense, including any judgments or settlements. Franchisees are required to sign documents and perform acts necessary for their defense or prosecution in litigation related to the proprietary marks, with Beggars Pizza reimbursing out-of-pocket expenses unless the litigation results from the franchisee's non-compliant use of the marks.
These stipulations are typical in franchising, as franchisors need to protect their brand identity while also granting franchisees the right to use their trademarks. The domain name situation is not uncommon, and Beggars Pizza has taken steps to differentiate its online presence with a different URL. Prospective franchisees should confirm that they understand the requirements for using the trademarks and the potential costs associated with trademark-related legal issues.