Under what condition is the supplier of Beggars Pizza not obligated to provide notice of price adjustments?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Supplier may make reasonable adjustments in the Prices upon notice to Franchisee from time to time in writing or in the Manual; provided, however, that Supplier will have no such obligation for such products sold hereunder (as determined by Supplier) for which there are frequent wholesale price fluctuations.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the supplier, BEGCOM, LLC, is generally required to provide written notice to the franchisee regarding price adjustments for the products they supply. These adjustments are considered reasonable and can be communicated in writing or through the Beggars Pizza manual. However, there is an exception to this notification requirement.
BEGCOM, LLC, as the supplier, does not have to provide notice for products sold under the agreement if those products are subject to frequent wholesale price fluctuations. The determination of which products fall into this category is made solely by the supplier. This means that franchisees may experience price changes for certain items without prior warning, depending on the volatility of the wholesale market for those specific goods.
This lack of notice could impact a franchisee's ability to accurately forecast costs and manage their budget. It is important for prospective Beggars Pizza franchisees to understand which products are subject to these fluctuations and how frequently prices might change. Franchisees should discuss this with the franchisor and current franchisees to better prepare for potential unexpected cost increases.