Under what section of the Beggars Pizza Franchise Agreement is the renewal or extension of the term defined for Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION]
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the term of the franchise | 2.1. | Ten years. |
| b. Renewal or extension of the term | 2.2. | You have the right to renew for one additional ten-year term if certain conditions are met. |
| c. Requirements to renew or extend | 2.2. | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the renewal or extension of the franchise term is defined in Section 2.2 of the Franchise Agreement. The initial term of a Beggars Pizza franchise is ten years, as outlined in Section 2.1.
Section 2.2 grants the franchisee the right to renew the franchise for one additional ten-year term, provided certain conditions are met. These conditions, detailed in the FDD, include timely written notice of the franchisee's intent to renew.
Additionally, to qualify for renewal, the franchisee must complete all required maintenance, refurbishing, renovations, and remodeling to ensure the restaurant reflects the current image of a Beggars Pizza restaurant. The franchisee must also be in compliance with the existing Franchise Agreement and have satisfied all monetary obligations to Beggars Pizza, its affiliates, and trade creditors. Furthermore, the franchisee needs to provide evidence of their ability to maintain possession of the restaurant premises for the renewal term, execute the then-current Franchise Agreement (which may have different terms), provide a general release, meet current qualification and training requirements, and pay a renewal fee.