What determines the length of the Beard Papas franchise term under the Multi-Unit Development Agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Sections in Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Varies depending on the number of Shops to be developed and the Development Area. The agreement commences on the effective date and the term automatically expires at the earlier of the opening of the final Shop required for development, or the last day of the calendar month in which the final Shop was required to be open under the Multi-Unit Development Agreement. |
| b. | Renewal or extension of the | Not | There is no renewal of the Multi-Unit Development |
| term | applicable | Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the length of the Multi-Unit Development Agreement term is determined by two factors: the number of Shops to be developed and the Development Area. The agreement begins on the effective date and concludes automatically.
The term expires when one of two conditions is met. The first condition is the opening of the final Shop required for development. The second condition is the last day of the calendar month in which the final Shop was required to be open, as outlined in the Multi-Unit Development Agreement.
Prospective franchisees should note that Beard Papas does not offer any renewal or extension options for the Multi-Unit Development Agreement. This means that once the agreement expires, the franchisee will need to negotiate a new agreement with Beard Papas if they wish to continue developing additional locations.