What article of the Beard Papas Franchise Agreement addresses conditions for renewal?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
rnational, Inc. Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign the Muginoho International, Inc. Multi-Unit Development Agreement (the "Development Agreement"), as follows:
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- Under Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C(6) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
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- Under Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," the subarticle 15.B(8) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
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Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, Article 15.B of the Franchise Agreement outlines the conditions for renewal. Specifically, for franchisees in New York, subarticle 15.B(8) is supplemented to ensure that all rights and causes of action arising in favor of the franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder remain in force. This addition is intended to satisfy the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5.
Similarly, for franchisees in Hawaii, Sub-Article 15.B.(8) is supplemented to ensure that all rights enjoyed by the franchisee and any causes of action arising in the franchisee's favor from the provisions of the Hawaii Franchise Investment Law, remain in force. The intent of this provision is to ensure that the non-waiver provisions of the Hawaii Franchise Investment Law are satisfied. The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement, and if this subarticle contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
These amendments ensure that franchisees in New York and Hawaii retain their rights and protections under their respective state laws, even upon renewal of the franchise agreement. This is a crucial consideration for prospective franchisees in these states, as it clarifies that they cannot be forced to waive their legal rights as a condition of renewing their franchise agreement with Beard Papas.