factual

What articles in the Beard Papas Franchise Agreement address post-termination obligations?

Beard_Papas Franchise · 2025 FDD

Answer from 2025 FDD Document

or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.

17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM

Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:

  • (1) Permanently cease to be a franchise owner of the Shop that was the subject of this Agreement and cease to operate such Shop under the System;
  • (2) Directly or indirectly, hold itself out to any person or entity, or represent itself, as a present or former Beard Papa's Shop franchisee;
  • (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the Operations Manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or that constitute Franchisor's trade secrets; (c) System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products; and (e) any other advertising, marketing, media, and any other information, documents or things associated with Franchisor, the System, the Licensed Marks, Beard Papa's Shops, the Franchised Business, and Franchisee's former Beard Papa's Shop, including, without limitation, any confidential, proprietary methods, procedures, descriptions of products, techniques, trade secrets, recipes, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other things, tangible or intangible, associated with Franchisor, the System, the Licensed Marks, and Beard Papa's Shops;
  • (4) Return to Franchisor the Operations Manual (including any and all parts, supplements, and copies of the Operations Manual), the Confidential Information (including without limitation the Business Management System Data and all customer lists and information), and all other confidential materials, equipment, software, information, and property owned by Franchisor and all copies thereof provided, however, that Franchisee may retain Franchisee's copies of this

Agreement, correspondence between Franchisor and Franchisee, but not including Confidential Information that may be contained in or attached thereto, and other documents that Franchisee needs to retain pursuant to applicable law;

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 30–31)

What This Means (2025 FDD)

According to the 2025 Beard Papas Franchise Disclosure Document, several articles within the Franchise Agreement outline post-termination obligations for franchisees. Specifically, Article 17.B addresses the franchisee's duty to cease operations and protect the Beard Papas system upon termination or expiration of the agreement. This includes ceasing to operate as a Beard Papa's franchise, discontinuing the use of the System, Licensed Marks, and confidential information, and returning the Operations Manual and other proprietary materials to Beard Papas.

Additionally, Article 6.E discusses post-termination non-competition obligations, restricting the franchisee from engaging in competitive business activities after the agreement ends. Article 10.B states that the terms of the indemnification by franchisee shall survive the termination, expiration or transfer of the agreement.

These provisions are typical in franchise agreements to protect the brand's integrity, trade secrets, and market position. Prospective Beard Papas franchisees should carefully review these sections to understand their responsibilities and limitations should the franchise agreement be terminated.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.