Under what condition can a Beggars Pizza Cooperative require contributions exceeding 2% of Gross Sales?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Cooperative may require its members to make contributions to the Cooperative in an amount determined by the Cooperative up to a maximum of 2% of Gross Sales during any calendar year, unless two-thirds of the members of the Cooperative vote in favor of a greater contribution. Any payments you make to the Cooperative will be credited towards your required local advertising expenditure.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a regional advertising cooperative can mandate contributions exceeding 2% of gross sales if two-thirds of the cooperative's members vote in favor of the higher contribution amount. These cooperatives are established at Beggars Pizza's discretion to administer local and regional advertising programs.
Franchisees are required to join a cooperative if one exists in their area, becoming a member no later than 30 days after the cooperative's or the restaurant's opening. If a Beggars Pizza restaurant falls within multiple cooperative territories, the franchisee is only obligated to join one.
Any payments made to the cooperative by a Beggars Pizza franchisee will be credited toward their required local advertising expenditure. Beggars Pizza retains the authority to form, alter, dissolve, or merge any cooperative, ensuring control over the advertising strategies and financial aspects of these regional groups.