Who are considered 'Owners' of a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
the trademarks, service marks, emblems and indicia of origin, including the "Beard Papa's" trademark, the Beard Papa's logo, Trade Dress, and other trade names, service marks, trademarks, logos, slogans and designs authorized by us in connection with the identification of Beard Papa's Shops and the Approved Services and Products, provided that such trade names, trademarks, service marks, logos and designs are subject to modification, replacement and discontinuance by us in our Reasonable Business Judgment.
"Operations Manual" refers to and means, individually and collectively, the manual(s) designated by us and relating to the development and/or operations of Beard Papa's Shops including, but not limited to, the policies, procedures and requirements for the development and operation of Beard Papa's Shops. The Operations Manual may consist of one or more volumes, handbooks, manuals, written materials, videos, electronic media files, cloud/internet based list-service, intranet, internet based and accessed databases, computer media, email, webinars and other materials as may be modified, added to, replaced or supplemented by us from time to time in our Reasonable Business Judgment, whether by way of supplements, replacement pages, franchise bulletins, or other official pronouncements or means. Subject to our modification from time to time and based on our Reasonable Business Judgment, the Operations Manual shall, among other things, designate the Approved Services and Products that must be offered and sold by the Franchised Business.
"Owner" refers to and means collectively, individually, jointly and, as of the Effective Date: (a) the officers and directors of Franchisee (including the officers and directors of any general partner of Franchisee) who hold an ownership interest in Franchisee and/or in any Corporate Entity that maintains an ownership interest in Franchisee; (b) the managing member or manager of Franchisee, if franchisee is a limited liability company; (c) all holders of a 5% or more direct or indirect ownership interest in Franchisee and/or of any entity directly or indirectly controlling Franchisee; and (d) the Managing Owner(s).
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, an 'Owner' encompasses a range of individuals and entities associated with the franchise. This includes officers and directors of the franchisee, particularly those holding an ownership interest, as well as officers and directors of any corporate entity that maintains an ownership stake in the franchise. If the franchisee is a limited liability company, the managing member or manager is also considered an 'Owner'.
Furthermore, any individual or entity holding a 5% or greater direct or indirect ownership interest in the franchisee, or in any entity that directly or indirectly controls the franchisee, is classified as an 'Owner'. The 'Managing Owner(s)' also fall under this definition. The Managing Owner is responsible for the day-to-day oversight, management, and operation of the franchised business and must possess and maintain at least 25% of the equity and ownership interests in the Franchisee.
This broad definition of 'Owner' is significant because it clarifies who is bound by the various obligations and responsibilities outlined in the franchise agreement, including financial guarantees, confidentiality, and non-competition restrictions. Prospective franchisees should carefully consider this definition to understand who will be subject to these obligations and ensure that all relevant parties are aware of their responsibilities.