Under what condition is the Beggars Pizza franchise transfer fee waived?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 the 2025 Beggars Pizza Franchise Disclosure Document, the transfer fee is waived if the transferee executes the current form of the franchise agreement. In this case, the transferee will not be required to pay any initial franchise fee. However, the terms of the new agreement may differ from the original agreement, potentially including higher royalty fees, increased advertising contributions, or a modified territory.
This waiver is contingent upon the transferee (or its principals) entering into a written assignment that assumes all of the franchisee's obligations under the original agreement or executing Beggars Pizza's then-current franchise agreement. This new agreement will be for a term ending on the expiration date of the original agreement, including any renewal terms. The transferee or its principals must also guarantee the performance of all obligations in writing, in a form satisfactory to Beggars Pizza.
For a prospective Beggars Pizza franchisee, this means that while a transfer may avoid the initial franchise fee, it could come with other financial or operational adjustments. It is important to carefully review the terms of the new franchise agreement to understand any changes in royalty fees, advertising contributions, or territory rights. Franchisees should also be prepared to provide a written guarantee of performance from the transferee or its principals to satisfy Beggars Pizza's requirements.