Under what conditions can Beggars Pizza suspend product shipments to a franchisee?

According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza and Begcom may suspend or refuse product shipments to a franchisee under specific circumstances related to payment. If a franchisee fails to make any payment in full to Beggars Pizza, its designee, or Begcom when due under the Franchise Agreement, the Commissary Agreement, or otherwise, Beggars Pizza and Begcom have the right to take action.

Specifically, they may (a) suspend or refuse shipment of additional products until the outstanding payment is made. This means that if a franchisee falls behind on payments for any reason, Beggars Pizza can halt the supply of essential products needed to operate the franchise until the franchisee catches up on their financial obligations.

Additionally, Beggars Pizza and Begcom may (b) require payment for any or all future shipments of products to be made on a cash-on-delivery basis. This implies that even after a franchisee resolves a payment issue, Beggars Pizza can demand that all subsequent product shipments be paid for upfront, eliminating any credit terms. This could impact a franchisee's cash flow and require careful financial management to ensure continuous operation.

This policy highlights the importance of maintaining timely payments to Beggars Pizza and its affiliates. Failure to do so can lead to disruptions in product supply and stricter payment terms, potentially affecting the franchisee's ability to serve customers and manage their business effectively. Prospective franchisees should carefully review the payment terms outlined in the Franchise Agreement and Commissary Agreement to fully understand their financial obligations and avoid potential disruptions.