Following a fully compliant transfer of a Beard Papas franchise, what financial obligations are the franchisee, owner, and spouse no longer responsible for?

According to Beard Papas's 2025 Franchise Disclosure Document, after a transfer that fully complies with the outlined conditions, the franchisee, each owner, and each spouse are relieved of the obligation to pay any Royalty Fees and Advertising Contributions that accrue following the date the transfer is approved. This means that once the transfer is complete and approved by Beard Papas, the previous franchisee is no longer responsible for these ongoing fees.

This condition provides clarity for franchisees looking to sell their Beard Papas franchise. It assures them that they will not be burdened with future financial obligations to Beard Papas once the transfer is finalized and approved. This can make the prospect of selling the franchise more attractive, as it limits their liability to obligations incurred before the transfer date.

However, it's important to note that this release from financial obligations is contingent upon the transfer being fully compliant with all requirements outlined in Article 14.C of the Franchise Agreement. Any failure to meet these conditions could result in the franchisee, owner, and spouse remaining liable for these fees even after the transfer. Prospective franchisees should carefully review all transfer requirements with Beard Papas to ensure full compliance and avoid potential future liabilities.