When does the title to the equipment (but not the software) pass to the Beggars Pizza customer when purchasing from SpeedLine?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The risk of loss or damage will pass to the Customer upon delivery of the equipment and (where applicable) on-premises implemented software to the common carrier.
Title to the equipment (but not the software) will pass to the Customer on the later of delivery to the common carrier or payment of all amounts owing as described herein.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the title to the equipment (but not the software) purchased from SpeedLine passes to the customer on the later of two conditions. These conditions are the delivery to the common carrier, or upon the payment of all outstanding amounts owed as described in the agreement.
This means that even after the equipment is shipped, Beggars Pizza franchisees do not officially own it until all payments are made. This is a fairly standard practice, as it protects SpeedLine's interest in the equipment until they are fully compensated.
Beggars Pizza franchisees should ensure they understand the payment terms outlined in their agreement with SpeedLine to avoid any delays in obtaining full title to the equipment. This could impact their ability to use the equipment as collateral or sell it later on.