Are there any exceptions to the ten-year term length for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the term of the franchise | 2.1. | Ten years. |
| f. Termination by franchisor with cause | 15.1, 15.2, and 15.3. | We may terminate your Franchise Agreement if you default. |
| g. "Cause" defined – curable defaults | 15.3. | We may terminate your Franchise Agreement after providing you a 30-day cure period if you (a) fail to maintain the cleanliness of the Restaurant, (b) fail to substantially comply with your Franchise Agreement, (c) fail to pay us or our affiliates monies owed under your Franchise Agreement, (d) fail to maintain and observe our standards and specifications, (e) fail to obtain our written approval when required, (f) violate your lease, (g) use |
| 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. |
| 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. |
| b. Renewal or extension of the term | 2.2. | You have the right to renew for one additional ten-year term if certain conditions are met. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the standard franchise term is ten years, as detailed in Section 2.1 of the Franchise Agreement. However, the agreement can be terminated early by Beggars Pizza if the franchisee defaults. Defaults that could lead to termination include failing to maintain cleanliness, not complying with the Franchise Agreement, failing to pay owed monies, not maintaining standards, failing to obtain written approval when required, violating the lease, or misusing the premises. These defaults allow Beggars Pizza to terminate the agreement after a 30-day cure period is provided to the franchisee.
Additionally, the Franchise Agreement may be affected by the death or disability of a person with an interest in the agreement. In such cases, the executor, administrator, or personal representative must transfer the interest to a third party approved by Beggars Pizza within six months, subject to the same conditions as any other transfer. This implies a potential change in the franchisee, which could effectively alter the original term agreement.
Furthermore, Beggars Pizza has the option to purchase the franchisee's business assets upon termination or expiration of the Franchise Agreement. This includes the assignment of the lease and/or telephone numbers to Beggars Pizza, and the option to purchase the restaurant's assets within 30 days of termination or expiration. While not an exception to the term length itself, this clause provides Beggars Pizza with options that could influence the franchise's operation at the end of the term. The franchisee also has the right to renew the franchise agreement for one additional ten-year term if certain conditions are met.