Upon expiration or termination of the Beggars Pizza agreement, will any monetary amount be assigned to the franchisee for goodwill associated with the Proprietary Marks?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3.5 Any goodwill arising from Franchisee's use of the Proprietary Marks will inure solely and exclusively to the benefit of the Trademark Owner, and upon expiration or termination of the Agreement and the license granted herein, no monetary amount will be assigned to Franchisee or any of its principals, affiliates, subsidiaries, successors, licensees, or assigns as attributable to any goodwill associated with Franchisee's use of the System or the Proprietary Marks;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee will not receive any monetary compensation for goodwill associated with the Proprietary Marks upon expiration or termination of the franchise agreement. The franchise agreement specifies that any goodwill that arises from the franchisee's use of Beggars Pizza's Proprietary Marks will exclusively benefit the Trademark Owner.
This means that when the franchise agreement ends, the franchisee will not be entitled to any payment or consideration for the value or reputation built up under the Beggars Pizza brand during the term of the agreement. This is a standard practice in many franchise systems, as the brand and associated goodwill typically belong to the franchisor.
For a prospective Beggars Pizza franchisee, this condition highlights the importance of understanding that the value created through operating the franchise primarily benefits the franchisor. While the franchisee may profit during the term of the agreement, they should not expect to receive any financial benefit from the brand's goodwill upon termination or expiration of the agreement.