What was the total amount of management fees paid by Beggars Pizza in 2022?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
de evaluation of events up through and including March 22, 2024, which is the date the financial statements were available to be issued.
2. Related Party Transactions
The Company has a management fee agreement with Begcom, LLC, a related party through common ownership. The agreement expires on December 31, 2028. Management fees totaled $579,820 and $666,106 for the years ended December 31, 2023 and 2022, respectiv
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, management fees totaled $666,106 for the year ended December 31, 2022. These fees were paid to Begcom, LLC, which is identified as a related party due to common ownership. The management fee agreement between Beggars Pizza and Begcom, LLC is set to expire on December 31, 2028.
For a prospective franchisee, this indicates that Beggars Pizza has significant ongoing expenses related to management services provided by a related entity. Understanding the nature of these management services and the details of the agreement with Begcom, LLC is crucial. It's important to assess whether these fees are reasonable and what services are being provided in return.
Additionally, the FDD notes that management fees due to Begcom, LLC as of December 31, 2022, totaled $9,166 and were included in accounts payable on the balance sheet. This provides further insight into the financial relationship between Beggars Pizza and its related entities. A potential franchisee should investigate the specifics of this related-party transaction to fully understand the financial obligations and relationships of the company.