Upon termination or non-renewal of a Beggars Pizza franchise, what options does the franchisee have regarding the Restaurant's assets?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| i. Franchisee's obligations on termination/non-renewal | 16. | You must (a) stop operating the Restaurant, dispose of any proprietary products, and cease holding yourself out as a present or former Beggars Pizza® franchisee, (b) stop using the System, all confidential information, and the Proprietary Marks, (c) cancel all assumed names containing the Proprietary Marks, (d) offer us the option to purchase or assume the lease for the Restaurant, (e) assign all telephone numbers to us that you used in connection with the operation of the Restaurant, (f) refrain from infringing on the Proprietary Marks, (f) pay all sums owing to us and our affiliates, (g) pay us liquidated damages, (h) return the Manuals and all other confidential information to us, (i) cancel or assign to us all Internet domain names, URLs, and Internet sites containing or reflecting the Proprietary Marks, (j) offer us the option to purchase the Restaurant's assets, and (k) comply with non-competition and confidentiality covenants. |
| j. Assignment of contract by franchisor | 14.1. | We may transfer or assign your Franchise Agreement or any part of its rights or obligations to any party. Any designated assignee will become solely responsible for all our obligations under your Franchise Agreement from the date of assignment. |
| k. "Transfer" by franchisee – defined | 14.2. | A "transfer" is when you sell, assign, transfer, convey, pledge, encumber, merge, or give away any direct or indirect interest in your Franchise Agreement, yourself, or all or substantially all of the assets of the Restaurant. |
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, upon termination or non-renewal of the Franchise Agreement, a franchisee has certain obligations and options regarding the Restaurant's assets. Beggars Pizza has the option to purchase the assets of the Restaurant from the franchisee within 30 days of the termination or expiration of the Franchise Agreement. These assets include equipment, furnishings, and signage. The franchisee must also offer Beggars Pizza the option to purchase or assume the lease for the Restaurant. Additionally, the franchisee is obligated to assign all telephone numbers used in connection with the Restaurant's operation to Beggars Pizza.
Furthermore, the franchisee must cease operating the Restaurant, dispose of any proprietary products, and discontinue presenting themselves as a current or former Beggars Pizza franchisee. They must also stop using the Beggars Pizza System, all confidential information, and the Proprietary Marks. This includes canceling all assumed names containing the Proprietary Marks and canceling or assigning to Beggars Pizza all Internet domain names, URLs, and Internet sites containing or reflecting the Proprietary Marks.
Beggars Pizza also has the right of first refusal to acquire the franchisee's business, meaning they can match any offer made by a third party. These provisions ensure that Beggars Pizza maintains control over its brand and operations, even after a franchise agreement ends. The franchisee must comply with non-competition and confidentiality covenants as well.