Is the designation of a Development Area by Beard Papas a guarantee of sufficient suitable sites?

According to Beard Papas's 2025 Franchise Disclosure Document, the designation of a Development Area does not guarantee there will be enough suitable sites to meet the Minimum Performance Schedule. Beard Papas grants a Development Area to franchisees entering into a Multi-Unit Development Agreement, the size of which is negotiated and dependent on factors like the Development Schedule and market demographics.

Beard Papas explicitly states that designating a Development Area is not a warranty that enough suitable sites exist for the franchisee to meet their Minimum Performance Schedule. Franchisees are obligated to adhere to the agreed-upon development schedule and the terms of the Multi-Unit Development Agreement, as well as all other agreements with Beard Papas and its affiliates, including Franchise Agreements.

Failure to meet the Development Schedule under the Multi-Unit Development Agreement may result in the agreement's termination. This means that even with a designated Development Area, a franchisee could lose their development rights if they cannot find and secure suitable locations according to the agreed-upon timeline. Prospective franchisees should carefully consider the market conditions, demographics, and their ability to secure viable locations within the Development Area before signing a Multi-Unit Development Agreement with Beard Papas.