In the event of a breach, are all payments and obligations to Beard Papas accelerated and due immediately?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
tial Information for any purpose other than for the performance of your duties on behalf of us and in accordance with the scope of your work with us.
- 5. Reasonableness of Covenants and Restrictions. You agree that: the terms of this Agreement are reasonable and fair and that you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. You hereby waive any right to challenge the terms of this Agreement as being overly broad, unreasonable or otherwise unenforceable.
6. Breach. You agree that failure to comply with the terms of this Agreement will cause irreparable harm to us and to our Franchisor, Muginoho International, Inc., and other Beard Papa's franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us or our Franchisor, Muginoho International, Inc., to injunctive relief. You agree that we and/or our Franchisor, Muginoho International, Inc., may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, you agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Article are exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
7. Miscellaneous.
- (a) If we hire an attorney or file suit against you because you have breached this Agreement and if we prevail in such lawsuit, you agree to pay the reasonable attorney fees and costs that we incur.
- (b) Each section of this Agreement, including each subsection and portion thereof, is severable. In the event that any section, subsection or portion of this Agreement is unenforceable, it shall not affect the enforceability of any other section, subsection or portion;
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document, if a franchisee fails to comply with the terms of the agreement, it will cause irreparable harm to Beard Papas, its franchisor, Muginoho International, Inc., and other Beard Papa's franchisees. In such cases, Beard Papas or its franchisor is entitled to injunctive relief. They may seek this relief without needing to post a bond, provided due notice is given. The franchisee's sole remedy, if an injunction is issued, is to dissolve the injunction through a hearing. The franchisee also waives any claims for damages resulting from a wrongfully issued injunction. If a court requires a bond, the amount will not exceed $1,000.
Beard Papas has the discretion to apply payments received from the franchisee to any past due debts, including royalty fees, advertising contributions, purchases from Beard Papas or its affiliates, interest, or any other form of debt owed to Beard Papas or its affiliates. The franchisee is not allowed to withhold payments due to Beard Papas under any circumstances, even if they claim Beard Papas has not fulfilled its obligations.
While the FDD outlines the remedies available to Beard Papas in case of a breach, including injunctive relief and the application of payments, it does not explicitly state that all payments and obligations will be automatically accelerated and immediately due upon a breach of contract. A prospective franchisee should clarify with Beard Papas whether a breach of contract would trigger an acceleration clause, making all future payments immediately due and payable.