Under what conditions can the Beggars Pizza Franchise Agreement be amended or changed?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ceipt or rejected delivery.
IN WITNESS WHEREOF, each of the undersigned Guarantors has executed this Guarantee as of the date of the Franchise Agreement.
GUARANTOR:
individually individually individually individually
EXHIBIT J
RENEWAL ADDENDUM
BEGGARS PIZZA FRANCHISE, LLC FRANCHISE AGREEMENT RENEWAL ADDENDUM
| This BEGGARS PIZZA FRANCHISE, LLC FRANCHISE AGREEMENT RENEWAL | ||
|---|---|---|
| ADDENDUM (the "Addendum") is made and entered into on, 20, by and between Beggars Pizza Franchise, LLC, formerly known as Beggars Pizza Franchise Corporation, an Illinois corporation located at 12949 South California Avenue, Blue Island, | ||
| Illinois 60406 ("Franchisor"); and | , a | |
| located at | WITNESSETH: | ("Franchisee"). WHEREAS, Franchisee currently operates a Beggars Pizza® restaurant located at: |
| Franchisee dated | , 20 | (the "Restaurant") pursuant to a prior franchise agreement entered into between Franchisor and (the "Prior Agreement"); |
| Franchise, LLC Franchise Agreement dated Agreement; and | WHEREAS, Franchisor and Franchisee have entered into that certain Beggars Pizza , 20 (the "Franchise Agreement") for the purpose of renewing Franchisee's rights granted under the Prior | |
| Agreement as set forth herein. | WHEREAS, Franchisor and Franchisee desire to amend the terms of the Franchise | |
| hereby acknowledged, the parties, intending to be legally bound, agree as follows: | NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are | |
| 1. | The fifth WHEREAS clause on Page 1 of the Franchise Agreement is hereby | |
| deleted in its entirety and replaced with the following language: | ||
| restaurant; | WHEREAS, Franchisee has operated a Beggars Pizza® restaurant under Franchisor's System and Proprietary Marks under a franchise agreement, and wishes to enter into a renewal franchise agreement with Franchisor to continue to operate such | |
| 2. | Section 1.2 of the Franchise Agreement is hereby deleted in its entirety and | |
| replaced with the following: | ||
| 1.2 not relocate the | Restaurant without Franchisor may withhold approval of relocation in its sole discretion. | Approved Location. Franchisee will operate the Restaurant only at the location identified in Exhibit A (the "Approved Location"). Franchisee will Franchisor's prior written approval. |
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- Section 2.2 of the Franchise Agreement is hereby deleted in its entirety. Franchisee agrees and acknowledges that Franchisee has no right to further renew the Franchise Agreement after the term of the Franchise Agreement.
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- Section 3.1, Section 3.3, and Section 3.4 of the Franchise Agreement are hereby deleted in their entirety.
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- Section 4.1 of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
- 4.1 Renewal Fee. In consideration of the renewal franchise rights granted herein, Franchisee will pay a renewal fee to Franchisor of ($ ) upon execution of the Agreement.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the Franchise Agreement can be amended under specific circumstances, particularly during a renewal or transfer of the franchise. During a renewal, both Beggars Pizza and the franchisee may agree to amend the terms of the Franchise Agreement. This is done through a Franchise Agreement Renewal Addendum, where specific sections of the original agreement can be deleted and replaced with new language. For example, the addendum may modify clauses related to the franchisee's renewal rights, specific operational sections, renewal fees, training programs, and other exhibits.
In the context of a franchise transfer, Beggars Pizza may require a transferee to execute either a written assignment assuming the franchisee's obligations under the existing agreement or a new franchise agreement with terms that may differ from the original. These differing terms can include higher royalty fees, increased advertising contributions, or a modified territory. The new agreement would supersede the original in all respects, except that the transferee will not be required to pay an initial franchise fee.
Additionally, the guarantor(s) of the franchise agreement (typically the franchisee's principals and their spouses) waive notice of any amendments to the agreement. This means that Beggars Pizza can modify the agreement without directly notifying the guarantors, and the guarantors will still be bound by those changes. This condition underscores the importance of the guarantor's awareness of the franchisee's operations and financial obligations, as they remain responsible for the franchisee's performance under any amended terms.