Under what circumstances can a Beggars Pizza franchisee relocate or reconstruct the restaurant after damage or destruction?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2.3 If Franchisee at any time ceases to operate or otherwise abandons the Restaurant, or loses the right to possession of the Premises, or otherwise forfeits the right to do or transact business in the jurisdiction where the Restaurant is located.
However, if, through no fault of Franchisee, the Restaurant is damaged or destroyed by an event such that repairs or reconstruction cannot be completed within sixty (60) days thereafter, then Franchisee will have thirty (30) days after such event in which to apply for Franchisor's approval to relocate and/or reconstruct the Restaurant, which approval will not he unreasonably withheld;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee can apply for approval to relocate or reconstruct their restaurant if it is damaged or destroyed through no fault of their own. Specifically, this applies when repairs or reconstruction cannot be completed within 60 days of the event causing the damage. In such a case, the franchisee has 30 days after the event to apply for Beggars Pizza's approval to relocate and/or reconstruct the restaurant. Beggars Pizza states that this approval will not be unreasonably withheld.
This clause provides some security for franchisees who experience unforeseen disasters that render their current location unusable. It ensures that Beggars Pizza will consider relocation or reconstruction requests fairly, rather than outright denying them. However, the franchisee must still seek and obtain approval, and the franchisor retains some discretion in the decision.
It is important to note that the franchisee must apply for approval within 30 days of the event causing the damage, so prompt action is necessary. The extent of damage must also be significant enough that repairs/reconstruction would take longer than 60 days. If repairs can be completed within that timeframe, this clause does not apply. A prospective franchisee should clarify with Beggars Pizza what specific criteria or documentation would be required to demonstrate that repairs cannot be completed within 60 days and what factors would be considered reasonable grounds for approval or denial of a relocation/reconstruction request.