Within what timeframe must the interest in a Beggars Pizza franchise be transferred after the death or incapacity of a person with interest in the franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| o. Franchisor's option to purchase franchisee's business | 16.4, 16.5, and 16.11. | We may require you to assign your lease and/or telephone numbers to us upon the termination or expiration of your Franchise Agreement. We have the option to purchase the assets of the Restaurant from you within 30 days of the termination or expiration of your Franchise Agreement including your equipment, furnishings, and signage. |
| p. Death or disability of franchisee | 14.6. | Upon the death or physical or mental incapacity of any person with an interest in your Franchise Agreement, you, or all or substantially all of the assets of the Restaurant, the executor, administrator, or personal representative of such person must transfer the interest to a third party approved by us within six months subject to the same conditions as any other transfer. |
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, in the event of the death or physical or mental incapacity of a person with interest in a Beggars Pizza franchise, the executor, administrator, or personal representative must transfer the interest to a third party approved by Beggars Pizza within six months. This transfer is subject to the same conditions as any other transfer.
This means that if a franchisee or someone with an interest in the Beggars Pizza franchise dies or becomes incapacitated, their estate or representative has a limited time to find a qualified buyer and complete the transfer. The potential buyer must be approved by Beggars Pizza, and the transfer must meet the standard requirements for franchise transfers. This ensures that Beggars Pizza maintains control over who operates its franchises, even in unforeseen circumstances.
For a prospective Beggars Pizza franchisee, this clause highlights the importance of succession planning. Franchisees should consider how their business will be handled in the event of death or incapacity, including identifying potential successors and ensuring they meet Beggars Pizza's requirements. This can help ensure a smooth transition and protect the value of the franchise. The six-month timeframe is relatively standard in the franchise industry, but it's crucial to be aware of this requirement and plan accordingly.