Beggars Pizza Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$343,000 - $1,080,000
Franchise Fee
$12,500
Total US Locations
28
Business Summary
Beggars Pizza Restaurants operate eateries that serve pizza, various Italian-style foods, and both alcoholic and non-alcoholic beverages. These restaurants provide dine-in, carry-out, and delivery options for customers, and also offer catering services.
Corporate History
Beggars Pizza Franchise, LLC was initially incorporated in Illinois as Beggars Pizza Franchise Corporation on March 30, 2004. The company then transitioned into a limited liability company, renaming itself Beggars Pizza Franchise, LLC, on December 15, 2020. Beggars Pizza has been offering franchises for its restaurants since July 2004.
Financial Overview
Investment Range
$343,000 - $1,080,000
Franchise Fee (Low)
$12,500
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$240,000
Equipment Costs (High)
$785,000
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The audit reports for Beggars Pizza Franchise, LLC indicate a financially healthy company with positive net income and increasing cash balances for the years ended December 31, 2023, and 2022. The auditors have provided an unqualified opinion on the financial statements, meaning they present fairly the financial position and results of operations. There are no notes indicating a going concern qualification or substantial doubt about the company's ability to continue operations. A restatement was made in 2022 for the 2021 financial statements concerning the Illinois Pass-Through Entity Tax, reclassifying it as a distribution to members rather than an expense. The 2021 financial statements also included a note regarding risks and uncertainties related to the COVID-19 pandemic and its potential impact on franchisees, but management believed appropriate actions were taken to mitigate the negative impact.
Financing Details
Beggars Pizza Franchise, LLC does not offer any direct or indirect financing arrangements to its franchisees, including loans, guarantees, leases, or installment contracts. The franchisor also does not sell, assign, or discount franchisee financing arrangements to third parties, nor does it receive any consideration for referring franchisees to lenders. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
28
Franchised Units
21
Corporate Units
7
Avg Square Footage
5,500
Franchising Since
2004
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Beggars Pizza Franchise, LLC has no litigation history to report, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Beggars Pizza Franchise, LLC has no bankruptcy history to report, as no bankruptcies are required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Beggars Pizza franchisees must provide written notice of their intent to renew 6 to 12 months before the current agreement ends. They must also complete all required maintenance, refurbishing, renovating, and remodeling to ensure the restaurant meets the current brand image and standards. Franchisees need to be in good standing, meaning they are not in default of their agreement and have substantially complied with all terms throughout the initial term, including satisfying all monetary obligations to Beggars Pizza and its affiliates. They must also demonstrate the ability to maintain possession of the restaurant premises for the new term, sign Beggars Pizza's then-current franchise agreement (which may have different terms), execute a general release, meet current qualification and training requirements, and pay a renewal fee equal to 33% of Beggars Pizza's then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Beggars Pizza Franchise, LLC provides extensive support to its franchisees. Before opening, it offers site selection guidelines and consultation, conducts up to two on-site evaluations at its expense for site approval, and provides preliminary layouts, design specifications for furniture, fixtures, and signage. Beggars Pizza also delivers initial training for the franchisee and their managers, and provides one representative for on-site pre-opening and opening assistance. It makes advertising and promotional materials available for purchase and loans a copy of the confidential operational manuals. After opening, Beggars Pizza offers advice and assistance on the System's implementation and restaurant operation upon reasonable request (for which it may charge a fee). It continues to make advertising and promotional materials available and administers a Brand Fund for System-wide advertising.
Initial Training Hours
125
Training Location
Blue Island, IL
Ongoing Support
Beggars Pizza Franchise, LLC provides ongoing support to its franchisees after the restaurant opens. This includes offering advice and assistance on the proper implementation of the System and operation of the Restaurant upon reasonable request, for which a fee may be charged. Beggars Pizza also makes advertising and promotional materials available for purchase and maintains and administers a Brand Fund for System-wide advertising and marketing. Franchisees, their managers, and other employees are required to attend additional courses, seminars, and other training programs as reasonably required by Beggars Pizza from time to time.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Limited
Staffing Notes
Beggars Pizza Restaurants require the franchisee to maintain a competent, conscientious, and trained staff, including a manager who has successfully completed the franchisor's initial training program. This manager may be the franchisee themselves. All employees must maintain good customer relations, provide competent, courteous, and knowledgeable service, wear specified uniforms, and present a neat and clean appearance. Franchisees are solely responsible for all employment decisions, including hiring, firing, training, wage and hour compliance, record-keeping, supervision, and discipline of their employees. Employees are also expected to comply with Beggars Pizza's policies regarding social media use.