What agreement does a Beard Papas franchisee need to have with their landlord?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Tenant is a franchisee of Franchisor pursuant to the terms of a Franchise Agreement entered into between Franchisor and Tenant (the "Franchise Agreement") and the Leased Premises is to be used and operated by Tenant for the purpose of developing, establishing and operating a Beard Papa's Shop in accordance with the Beard Papa's franchise system; and
WHEREAS, Franchisor and Franchisor's successors and assigns (collectively referred to as "Franchisor") is/are intended third party beneficiaries of this Rider.
NOW THEREFORE, Landlord and Tenant acknowledge and agree to the following:
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- This Rider supplements and amends the Lease. In the event of any inconsistency or conflict between the terms of this Rider and the Lease, the terms of this Rider shall prevail. Landlord and Tenant acknowledge that the rights set forth in this Rider may not be reduced, modified or altered without the express written consent of Franchisor.
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- Landlord and Tenant both agree that Tenant shall not be permitted to transfer, sublease, encumber and/or otherwise assign Tenant's interests in the Lease and/or the Leased Premises without the prior written consent of Franchisor. Without limitation to the foregoing, among other things, Tenant agrees that if Tenant wishes to transfer any interests in the Lease or the Leased Premises that Tenant must request the written
consent of Franchisor. If Tenant requests Landlord's consent to Tenant's amendment, transfer and/or assignment of Tenant's interests in the Lease and/or the Leased Premises and if Landlord is inclined to approve of such amendment, transfer and/or assignment that Landlord shall condition Landlord's approval upon Tenant also obtaining written consent from Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, a franchisee must ensure their landlord agrees to a rider that supplements and amends the lease agreement. This rider ensures that the terms outlined within it take precedence over any conflicting terms in the original lease. Significantly, the rights detailed in this rider cannot be reduced, modified, or altered without the express written consent of Beard Papas.
Specifically, the landlord and tenant (franchisee) must agree that the franchisee cannot transfer, sublease, encumber, or assign their interests in the lease or the leased premises without prior written consent from Beard Papas. If the franchisee seeks the landlord's consent for any such transfer or assignment, the landlord must condition their approval on the franchisee also obtaining written consent from Beard Papas.
This agreement is crucial for Beard Papas to maintain control over the location and operation of its franchises. By requiring the landlord's agreement to these terms, Beard Papas ensures that it has a say in any changes to the lease or the tenant operating the Beard Papas shop. This protects the brand's interests and ensures consistent operation across all franchise locations. Prospective franchisees should carefully review this rider and understand its implications before signing any lease agreements.