What must a transferee of a Beggars Pizza franchise demonstrate to the franchisor's satisfaction?
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, if a franchisee wishes to transfer their franchise to a new owner, the franchisor's consent is required, but will not be unreasonably withheld. However, Beggars Pizza may require certain conditions to be met before approving the transfer. These conditions are at the discretion of Beggars Pizza.
Specifically, the current franchisee must have satisfied all accrued monetary and outstanding obligations to Beggars Pizza and its affiliates. Additionally, the franchisee cannot be in default of any provision within the franchise agreement, any amendments to it, or any other agreements with Beggars Pizza or its affiliates. The consideration or payment terms offered by the proposed new owner must also be reasonable, based on the restaurant's gross revenues and the sale prices of other Beggars Pizza restaurants, as determined by Beggars Pizza's reasonable business judgment.
Furthermore, the transferring franchisee must execute a general release, in a form satisfactory to Beggars Pizza, releasing any claims against Beggars Pizza, its affiliates, and their respective personnel. The new owner must also enter into a written assignment, in a form satisfactory to Beggars Pizza, agreeing to fulfill all of the franchisee's obligations under the existing franchise agreement. Alternatively, the new owner may be required to execute Beggars Pizza's then-current form of franchise agreement, which could have different terms than the original agreement, such as higher royalty fees or a modified territory. However, the new owner will not be required to pay an initial franchise fee. The new owner or their principals may also be required to guarantee the performance of all such obligations in writing, in a form satisfactory to Beggars Pizza.