Under what condition is a Beggars Pizza franchisee prohibited from subleasing, assigning, extending, or renewing the lease?

Based on the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee is required to assign any interest in the lease or sublease for the premises to Beggars Pizza if the franchise agreement is terminated or expires, at the franchisor's option. If Beggars Pizza does not elect to acquire the lease or sublease, the franchisee must modify or alter the premises immediately upon termination or expiration of the agreement to differentiate its appearance from a Beggars Pizza restaurant. These modifications must also include any specific additional changes reasonably requested by Beggars Pizza for that purpose.

If the franchisee fails or refuses to comply with these requirements, Beggars Pizza has the right to enter the premises and make the required changes. This clause ensures that upon termination or expiration of the franchise agreement, the franchisee cannot continue to operate a similar business that might be confused with Beggars Pizza, thereby protecting the brand's identity and market position.

This requirement is fairly standard in franchising to protect the brand and ensure a clean break between the franchisee and the franchisor upon termination of the agreement. Prospective franchisees should carefully consider the potential costs associated with modifying the premises if Beggars Pizza chooses not to take over the lease, as these costs can be significant.