After the expiration or termination of the Beard Papas Franchise Agreement, for how long are the franchisee, Owners, and their spouses prohibited from participating in a competitive business?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
You and each Owner and spouse must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), neither you nor your Owners and their spouses will participate in any competitive business located within and/or servicing customers located within your Designated Territory and a 25 mile radius surrounding your Designated Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 10 mile radius of any other Beard Papa's Shop and/or the designated territory of any other Beard Papa's Shop.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, franchisees, their owners, and their spouses are subject to certain non-compete restrictions both during the term of the franchise agreement and after its expiration or termination.
During the term of the Franchise Agreement, franchisees, owners, and their spouses cannot participate in any business that competes with Beard Papas. After the expiration or termination of the Franchise Agreement, this restriction continues for 24 months. This 24-month period can be extended if the franchisee is not in compliance with the agreement, with the non-compete period being tolled during any periods of non-compliance.
The post-term non-compete restricts franchisees, owners, and their spouses from participating in a competitive business within the franchisee's Designated Territory and a 25-mile radius surrounding it. Additionally, they are prohibited from participating in a competitive business within a 10-mile radius of any other Beard Papa's shop or the designated territory of any other Beard Papa's shop. This means that even after leaving the Beard Papas system, franchisees and related parties are significantly restricted in their ability to engage in similar businesses in areas where Beard Papas operates.