Where must disputes with Beard Papas be submitted for mediation?

According to Beard Papas's 2025 Franchise Disclosure Document, except for claims seeking injunctive relief, all disputes must first undergo non-binding mediation in Los Angeles County, California. If the mediation is unsuccessful, the dispute will then proceed to binding arbitration, also in Los Angeles County, California. This requirement is subject to applicable state law, meaning that specific state regulations could potentially modify or supersede this provision.

For a prospective Beard Papas franchisee, this means that if a dispute arises with the franchisor, the initial step involves attempting to resolve the issue through mediation in Los Angeles County. Mediation is a process where a neutral third party helps facilitate a discussion to reach a mutually agreeable solution. Because the mediation is non-binding, either party can reject the outcome and proceed to arbitration.

Arbitration, if required after unsuccessful mediation, will also take place in Los Angeles County, California. Arbitration is a more formal process where an arbitrator hears evidence and makes a decision that is binding on both parties. The FDD stipulates that these dispute resolution processes are subject to applicable state law, so franchisees should be aware of any state-specific regulations that might affect these procedures. Franchisees should consult with a legal professional to understand their rights and obligations regarding dispute resolution under the franchise agreement and relevant state laws.