factual

Under the Beggars Pizza franchise agreement, which sections cover site selection and acquisition/lease obligations?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

is Site Selection Addendum. Time is of the essence.

    1. Franchisor will not establish, nor franchise another to establish, a Beggars Pizza® restaurant within the Site Selection Territory until Franchisor approves a location for the Restaurant or until the time set forth in Paragraph 1 expires, whichever event first occurs.
    1. Prior to Franchisee's acquisition by lease or purchase of a site for the Restaurant, Franchisee must submit to Franchisor, in the form specified by Franchisor, a completed site review form, such other information or materials as Franchisor may reasonably require, and a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the proposed site. Recognizing that time is of the essence, Franchisee must submit a proposed site, together with the information and materials required by this Paragraph 4, to Franchisor for its approval within sixty (60) days after execution of this Site Selection Addendum. Franchisor will have thirty (30) days after receipt of such information and materials from Franchisee to approve or disapprove the site as a location for the Restaurant in Franchisor's sole discretion. No proposed site will be deemed approved unless it has been expressly approved in writing by Franchisor.
      1. Franchisor must furnish to Franchisee the following:
  • a. Such site selection guidelines and consultation as Franchisor deems advisable;
  • b. Such on-site evaluation as Franchisor deems advisable as part of its evaluation of Franchisee's request for site approval; provided, however, that Franchisor will not provide on-site evaluation for any proposed site prior to Franchisor's receipt of the information or materials required by Paragraph 4 hereof. If on-site evaluation is deemed necessary and appropriate by Franchisor, Franchisor will conduct up to two (2) on-site evaluations at Franchisor's

expense. For each additional on-site evaluation (if any), Franchisee must reimburse Franchisor for Franchisor's related expenses including, without limitation, the costs of travel, lodging, and meals.

    1. If Franchisee will occupy the premises of the Restaurant under a lease, Franchisee must, prior to the execution thereof, (a) execute the Conditional Assignment of Lease and obtain the Lessor's execution of the Consent and Agreement of Lessor, in the forms attached as Exhibit G to the Agreement, and (b) submit the lease to Franchisor for its approval. Franchisor's approval of the lease may be conditioned upon the inclusion of the following terms and conditions:
  • a. That the initial term of the lease, or the initial term together with renewal terms, must be for not less than ten (10) years;
  • b. That the lessor consents to Franchisee's use of such Proprietary Marks and initial signage as Franchisor may prescribe for the Restaurant;
  • c. That the use of the premises be restricted solely to the operation of the Restaurant;
  • d. That Franchisee be prohibited from subleasing or assigning all or any part of its occupancy rights or extending the term of or renewing the lease without Franchisor's prior written consent;
  • e. That lessor provide to Franchisor copies of any notices of default given to Franchisee under the lease;
  • f. That Franchisor may enter the premises to make modifications necessary to protect the Proprietary Marks or the System or to cure any default under the Agreement or under the lease; and
  • g.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–19)

What This Means (2025 FDD)

According to the 2025 Beggars Pizza Franchise Disclosure Document, the franchise agreement addresses site selection and acquisition/lease obligations primarily within the Site Selection Addendum, referenced as Exhibit B. Paragraph 4 of the agreement stipulates that before a franchisee can acquire a site, they must submit a completed site review form, along with other required information, to Beggars Pizza for approval. This submission must occur within 60 days of signing the Site Selection Addendum. Beggars Pizza then has 30 days to approve or disapprove the proposed site in writing.

Paragraph 5 outlines Beggars Pizza's responsibilities, including providing site selection guidelines and consultation. They may also conduct on-site evaluations, with Beggars Pizza covering the expenses for up to two evaluations. The agreement also states that the franchisee must furnish Beggars Pizza with a copy of any executed lease within ten days after execution.

It is important to note that Beggars Pizza's approval of a site does not guarantee its suitability or potential for success. The franchisee is responsible for their own independent investigation of the site's suitability. Failure to secure premises within the specified timeframe constitutes a default under the agreement. These provisions are typical in franchise agreements, as franchisors want to ensure brand consistency and appropriate locations, while franchisees bear the ultimate responsibility for their business's success.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.