Under what condition can the supplier agreement with Beggars Pizza be terminated automatically?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- Term; Termination. The Agreement will become effective on the Agreement Date and, except as otherwise provided in the Agreement, will remain in full force and effect until the sooner of the expiration or termination of the Franchise Agreement (the "Term"). The Agreement will automatically terminate upon the termination of the Franchise Agreement. Either party will have the right to terminate the Agreement upon thirty (30) days prior written notice and opportunity to cure if a material default by the other party occurs.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the supplier agreement between the franchisee and the designated supplier, BEGCOM, LLC, will automatically terminate if the Franchise Agreement between the franchisee and Beggars Pizza is terminated. This means that the supplier agreement is directly tied to the continuation of the franchise agreement.
Beyond automatic termination, either party (the franchisee or the supplier) has the right to terminate the agreement if a material default occurs by the other party. However, this requires a thirty (30) day prior written notice, allowing the defaulting party an opportunity to cure the default. This provides a window for resolving issues before the agreement is fully terminated.
For a prospective Beggars Pizza franchisee, this condition highlights the importance of maintaining a good standing under the Franchise Agreement. Any issues leading to the termination of the Franchise Agreement will also result in the loss of the supplier agreement, potentially disrupting the supply chain and business operations. It also emphasizes the need to address any material defaults promptly to avoid termination of the supplier agreement, ensuring a stable supply of products for the Beggars Pizza restaurant.