Are there any exceptions to the requirement that Beggars Pizza purchase items from approved suppliers?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in Section 7.3 and Section 7.4.3, Franchisee must purchase all food items, ingredients, supplies, materials, and other products and equipment used or offered for sale at the Restaurant for which Franchisor has established standards or specifications solely from Franchisor, an affiliate of Franchisor, or suppliers (including manufacturers, distributors, and other sources) designated by Franchisor that demonstrate to the continuing reasonable satisfaction of Franchisor the ability to meet Franchisor's standards and specifications, who possess adequate quality controls and capacity to supply Franchisee's needs promptly and reliably, and who have been approved by Franchisor in the Manual or otherwise in writing.
Franchisor may require Franchisee to purchase any approved products, equipment, and merchandise solely from Franchisor or an affiliate of Franchisor.
If Franchisee desires to purchase products from a party other than an approved supplier, Franchisee must submit to Franchisor a written request to approve the proposed supplier, together with such evidence of conformity with Franchisor's specifications as Franchisor may reasonably require.
Franchisor may require that its representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered for evaluation and testing either to Franchisor or an independent testing facility designated by Franchisor.
Franchisee must pay a charge not to exceed the cost of the evaluation and testing.
Franchisor must use its best efforts to notify Franchisee in writing of its approval or disapproval of the proposed supplier within thirty days after the completion of such evaluation and testing.
Franchisee must not sell or offer for sale any products of the proposed supplier until Franchisor's written approval of the proposed supplier is received.
Franchisor may from time to time revoke its approval of particular products or suppliers when Franchisor determines, in its sole discretion, that such products or suppliers no longer meet Franchisor's standards.
Upon receipt of written notice of such revocation, Franchisee must cease to sell any disapproved products and cease to purchase from any disapproved supplier.
Franchisee must use products purchased from approved suppliers solely for the purpose of operating the Restaurant and not for any other purpose including, without limitation, resale.
Nothing in the foregoing will be construed to require Franchisor to make available to prospective suppliers, standards and specifications for formulas including, without limitation, recipes or ingredients for proprietary or trade secret products that Franchisor deems confidential in its sole discretion.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are generally required to purchase all food items, ingredients, supplies, materials, and equipment from Beggars Pizza, its affiliates, or approved suppliers that meet the franchisor's standards and specifications. However, a franchisee can request approval of a supplier not already on the approved list.
To gain approval for an alternative supplier, the franchisee must submit a written request to Beggars Pizza, along with evidence that the proposed supplier meets the franchisor's standards. Beggars Pizza may then require an inspection of the supplier's facilities and samples for evaluation and testing, with the franchisee bearing the costs of these evaluations. Beggars Pizza is expected to notify the franchisee of its decision within 30 days after completing the evaluation and testing. The franchisee cannot use the proposed supplier until written approval is received.
Beggars Pizza retains the right to revoke approval of any product or supplier if they no longer meet the franchisor's standards. Upon receiving written notice of such revocation, the franchisee must immediately cease purchasing from the disapproved supplier and selling any disapproved products. Franchisees are also restricted from using products purchased from approved suppliers for any purpose other than operating the restaurant, specifically prohibiting resale. Beggars Pizza is not obligated to disclose proprietary or trade secret formulas to prospective suppliers.