Can Beggars Pizza transfer or assign the Franchise Agreement to another party?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will not unreasonably withhold its consent to a transfer.
Franchisor may require any or all of the following as conditions of its approval in its sole discretion:
14.3.1 That all of Franchisee's accrued monetary obligations and all other outstanding obligations to Franchisor and its affiliates have been satisfied;
14.3.2 That Franchisee is not in default of any provision of the Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee and Franchisor or its affiliates;
14.3.3 That the consideration or payment terms offered by a proposed transferee are not excessive or unreasonable, based on the gross revenues of the Restaurant and sale prices of other Beggars Pizza® restaurants in the System in Franchisor's reasonable business judgment;
14.3.4 That the transferor executes a general release, in a form satisfactory to Franchisor, of any claims against Franchisor and its affiliates, and their respective officers, directors, agents, shareholders, and employees;
14.3.5 That (a) (i) the transferee (and if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Franchisor may request) enters into a written assignment, in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under the Agreement, or (ii) the transferee executes, for a term ending on the expiration date of the Agreement and with such renewal terms as may be provided by the Agreement, Franchisor's then-current form of franchise agreement and other ancillary agreements as Franchisor may require for the Restaurant, which agreements will supersede the Agreement in all respects, and the terms of which may differ from the terms of the Agreement including, without limitation, a higher royalty fee and advertising contribution and a smaller or modified Franchisee's Territory, except that transferee will not be required to pay any initial franchise fee, and (b) the transferee or its principals guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor will not unreasonably withhold consent to a transfer of the franchise agreement. However, Beggars Pizza may require certain conditions to be met before approving a transfer.
These conditions include ensuring that the franchisee has satisfied all accrued monetary and outstanding obligations to Beggars Pizza and its affiliates and is not in default of any provision of the Franchise Agreement or any other agreement with the franchisor or its affiliates. Beggars Pizza will also assess whether the consideration or payment terms offered by the proposed transferee are reasonable, based on the restaurant's gross revenues and sale prices of other Beggars Pizza restaurants.
Additionally, Beggars Pizza requires the transferor to execute a general release of any claims against the franchisor and its affiliates. The transferee must also enter into a written assignment, agreeing to fulfill all of the franchisee's obligations under the existing agreement, or execute Beggars Pizza's then-current form of franchise agreement. If the transferee executes a new franchise agreement, the terms may differ from the original agreement, potentially including higher royalty fees and advertising contributions, as well as a modified territory. However, the transferee will not be required to pay an initial franchise fee. The transferee or its principals must also guarantee the performance of all obligations in writing, in a form satisfactory to Beggars Pizza.