Are transfers by devise or inheritance subject to the same conditions as other transfers for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.6 Death or Incapacity. Upon the death or physical or mental incapacity of any person with an interest in the Agreement, in Franchisee, or in all or substantially all of the assets of the Restaurant, the executor, administrator, or personal representative of such person must transfer such interest to a third party approved by Franchisor within six (6) months after such death or incapacity. Such transfers including, without limitation, transfers by devise or inheritance will be subject to the same conditions as any inter vivos transfer. In the case of transfer by devise or inheritance, if the heirs or beneficiaries of any such person are unable to meet the conditions in this Section 14, the executor, administrator, or personal representative of the decedent must transfer the decedent's interest to another party approved by Franchisor within a reasonable time, which disposition will be subject to all the terms and conditions for transfers contained in the Agreement. If the interest is not disposed of within a reasonable time, Franchisor may terminate the Agreement pursuant to Section 15.2.7.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, transfers of a franchise interest due to death or incapacity, including transfers by devise or inheritance, are subject to the same conditions as any transfer made during the franchisee's lifetime. This means that if a franchisee passes away or becomes incapacitated, their interest in the Beggars Pizza franchise must be transferred to a third party approved by Beggars Pizza within six months.
If the heirs or beneficiaries are unable to meet the standard transfer conditions, the executor, administrator, or personal representative must transfer the interest to another party approved by Beggars Pizza within a reasonable time. This transfer is also subject to all the standard terms and conditions for transfers outlined in the franchise agreement.
If the franchise interest is not properly transferred within a reasonable timeframe, Beggars Pizza has the right to terminate the franchise agreement. This ensures that Beggars Pizza maintains control over who operates its franchises, even in cases of death or incapacity, and that the brand's standards are upheld.