Can Beggars Pizza withhold approval of a proposed supplier unreasonably?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If you desire to purchase products from a party other than an approved supplier, you must submit a written request to us to approve the proposed supplier with evidence of conformity with our specifications as we may require. You must pay the costs of our evaluation and testing of the proposed supplier. We will use our best efforts to notify you of our approval or disapproval of the proposed supplier within 30 days after our receipt of your request. Our approval will not be unreasonably withheld. If you do not receive our decision within this 30-day period, the supplier will be deemed unapproved. You may not sell or offer for sale any products of the proposed supplier until you receive our written approval of the supplier. We may revoke our approval of particular products or suppliers at any time we determine that such products or suppliers no longer meet our standards in our sole discretion.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza's approval of a proposed supplier will not be unreasonably withheld. If a franchisee desires to purchase products from a supplier that is not already approved, they must submit a written request to Beggars Pizza for approval, providing evidence that the supplier meets Beggars Pizza's standards and specifications. The franchisee is responsible for covering the costs associated with the evaluation and testing of the proposed supplier.
Beggars Pizza commits to using its best efforts to notify the franchisee of its decision regarding the supplier's approval within 30 days of receiving the request. However, if the franchisee does not receive a decision within this 30-day period, the supplier is automatically deemed unapproved. The franchisee is prohibited from selling or offering products from the proposed supplier until written approval is granted by Beggars Pizza.
Beggars Pizza retains the right to revoke its approval of specific products or suppliers at any time if it determines that they no longer meet the company's standards. This decision is made at Beggars Pizza's sole discretion. This clause ensures that Beggars Pizza maintains control over the quality and consistency of products used and sold at its franchise locations, while also providing a framework for franchisees to propose alternative suppliers, subject to Beggars Pizza's approval.