What aspects of site selection are covered under section 5.5 of the Beard Papas agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
5.5 SITE SELECTION
Franchisee will be solely responsible for selecting the site(s) for the Franchisee's Shop Locations. In accordance with the terms and conditions of each respective Franchise Agreement, Franchisee must obtain Franchisor's prior written approval as to each potential Shop Location selected by Franchisee. Franchisee will retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating Shop sites to locate, acquire, purchase or lease the site for the Franchisee's Development Shops. Accordingly, no provision of this Agreement will be construed or interpreted to impose any obligation upon Franchisor to locate a site for the Development Shops, to assist Franchisee in the selection of a suitable site for the Development Shops, or to provide any assistance to the Franchisee in the purchase or lease of the site for the Development Shops.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, Section 5.5 of the franchise agreement addresses site selection responsibilities. It states that the franchisee is solely responsible for selecting the site for their Beard Papas shop location. However, the franchisee must obtain prior written approval from Beard Papas for each potential shop location.
To assist in this process, the franchisee is required to retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating shop sites. This professional will help the franchisee locate, acquire, purchase, or lease the site for their Development Shops.
Importantly, the agreement clarifies that Beard Papas has no obligation to locate a site for the Development Shops, assist the franchisee in selecting a suitable site, or provide any assistance in the purchase or lease of the site. This means the franchisee bears the full responsibility for finding and securing an appropriate location, subject to Beard Papas' final approval. This arrangement is fairly common in franchising, where the franchisor sets criteria but the franchisee handles the local execution.