Does the Beard Papas FDD Item 23 table indicate any dependencies between different articles?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
"Reserved Rights" shall have the meaning defined and set forth in Article 2.D. of this Agreement.
"Restricted Territory" refers to and means the geographic area: (a) comprising Franchisee's Designated Territory; (b) comprising a 25 mile radius surrounding Franchisee's Designated Territory or, if Franchisee is not granted or designated a designated territory, then a 25 mile radius surrounding Franchisee's Shop Location; (c) comprising a 10 mile radius surrounding the Shop Locations for all other Beard Papa's Shops operating and/or under development as of the Effective Date of this Agreement; and (d) comprising a 10 mile radius surrounding the Shop Locations for all other Beard Papa's Shops that are in operation or under development during all or any part of the Post-Term
Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area comprising Franchisee's Designated Territory plus a 25 mile radius surrounding Franchisee's Designated Territory or, if Franchisee is not granted or designated a designated territory, then a 25 mile radius surrounding Franchisee's Shop Location.
"Royalty and Activity Report" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
"Royalty Fee" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
"Royalty Rate" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
"Scheduled Business Commencement Date" refers to and means the date that occurs on the nine month anniversary of the Effective Date of this Agreement.
"Shop Facility" refers to and means the fixed commercial shop facilities, including the fixtures and improvements, from which Beard Papa's Shops are established, operated and managed.
"Shop Location(s)" refers to and means the fixed locations from which Beard Papa's Shops are developed, operated and managed.
"Site Selection Acknowledgment" refers to and means the form of Site Selection Acknowledgment attached to this Agreement as Exhibit 3.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, Item 23 includes definitions of terms used in the franchise agreement, and these definitions often reference specific articles within the agreement, indicating a dependency between them. For example, the definition of "Reserved Rights" refers to Article 2.D of the agreement. Similarly, the definitions for "Royalty and Activity Report", "Royalty Fee", and "Royalty Rate" all point to Article 5.B.
This cross-referencing is a common legal drafting technique to ensure clarity and avoid redundancy. For a prospective Beard Papas franchisee, this means understanding the definitions in Item 23 is crucial for interpreting the related articles in the franchise agreement.
Specifically, when reviewing articles such as Article 2.D or Article 5.B, a franchisee should refer back to the definitions in Item 23 to fully grasp the meaning and implications of those articles. This interconnectedness highlights the importance of carefully reading and understanding the entire franchise agreement, not just individual sections in isolation. The references to exhibits like the "Site Selection Acknowledgment" (Exhibit 3) and "Lease Agreement Rider" (Exhibit 4) also demonstrate how the main agreement ties into other related documents that a franchisee must be aware of.