Which articles in the Beard Papas Franchise Agreement outline the franchisee's advertising obligations?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
kets. Franchisee may face competition from other Beard Papa's Shops and other System franchisees with shop locations and/or designated territories, including Shops that are located within Closed Markets and/or located adjacent to and/or within a close proximity to Franchisee's Shop Location and/or Designated Territory. Franchisee agrees that although Franchisor may disapprove of any marketing medium that is distributed and/or reaches outside of Franchisee's Designated Territory, that Franchisor is not obligated to do so and that Franchisee may face competition from other Beard Papa's Shops and System franchisees that market and promote their Beard Papa's Shop through internet, mail, public relations, Third party Ordering and/or Delivery Services, and other marketing activities and mediums that are distributed to or within Franchisee's Designated Territory. Franchisee agrees that Franchisee shall not receive any compensation whatsoever if Franchisor or another System franchisee solicits customers from within Franchisee's Designated Territory; and
- (10) The foregoing rights granted in this Article 2.A. are subject to and contingent upon each and every, term and condition of this Agreement, the rights of any prior user, and are non-exclusive and subordinate to the Reserved Rights.
2.B. TERM
Unless sooner terminated pursuant to the terms of this Agreement, the term of this Agreement will be for a period of 10 consecutive years, commencing from the Effective Date (the "Term").
**2.C.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 30–31)
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document excerpts, the specific articles within the Franchise Agreement that detail a franchisee's advertising obligations are not explicitly mentioned. However, Article 2.A does discuss marketing activities and mediums. It states that Beard Papas may disapprove of marketing mediums that reach outside of a franchisee's Designated Territory, but is not obligated to do so. Franchisees may face competition from other Beard Papas shops and System franchisees that market and promote their shops through internet, mail, public relations, third-party ordering and/or delivery services, and other marketing activities and mediums that are distributed to or within the franchisee's Designated Territory. The franchisee will not receive compensation if Beard Papas or another System franchisee solicits customers from within the franchisee's Designated Territory. Article 5.E. also mentions "Advertising Contributions" as part of the payments that Beard Papas has sole discretion to apply payments received from the franchisee. Article 14.C.(9) states that following a transfer that fully complies with the article, the franchisee will not be obligated to pay any Advertising Contributions which accrue following the date of the approved Transfer.
Since the FDD excerpts do not explicitly list the articles outlining advertising obligations, it is important for prospective franchisees to carefully review the full Franchise Agreement and ask Beard Papas for clarification on which articles specifically define these obligations. This includes understanding the extent of required advertising contributions, any restrictions on advertising methods, and the approval processes for marketing materials. Knowing these details will help a franchisee understand their responsibilities and budget effectively for advertising and promotional activities.
Understanding the advertising obligations is crucial for a prospective Beard Papas franchisee. It will help them to effectively market their location while staying compliant with the franchise agreement. It is also important to understand how advertising contributions are used and what control, if any, the franchisee has over these funds.