What is the deadline for the transferee to complete the required improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading of the Beard Papas Shop Facility?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) Unless Franchisee has met the requirements of Article 3.E. within the five year period immediately preceding the Transfer, the transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Beard Papa's Shop Facility to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, if the franchisee has not met the requirements of Article 3.E within the five-year period before the transfer, the transferee is responsible for upgrading the Beard Papas Shop Facility to meet the franchisor's current standards. The deadline for completing these upgrades is within the timeframe that Beard Papas reasonably specifies.
This means that a new owner taking over an existing Beard Papas location might need to invest in renovations to bring the shop up to current brand standards if the previous owner didn't keep the location updated. The exact amount of time the transferee has to complete the upgrades is determined by Beard Papas at the time of the transfer.
For a prospective franchisee, this highlights the importance of understanding the condition of an existing location before agreeing to a transfer. It would be prudent to assess the potential costs of required upgrades and negotiate the transfer agreement accordingly. It is also important to clarify with Beard Papas what specific timeframe they would impose for completing any required upgrades to avoid potential issues or penalties later on.