Where in the Beard Papas franchise agreement can I find the definition of 'Development Area'?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Development Area" shall have the meaning defined and set forth in Section 2.1 of this Agreement.
SECTION 2 DEVELOPMENT RIGHTS
2.1 DEVELOPMENT GRANT AND DEVELOPMENT OBLIGATIONS
Franchisor grants to Franchisee the right, and Franchisee accepts the right and undertakes the obligation to develop Beard Papa's Shops, each to be developed, opened and operated by Franchisee within the Development Area (each, a "Development Shop"), provided that Franchisee develops, opens and operates such Development Shops in strict accordance with the Development Schedule, and in accordance with the terms and provisions of each respective Franchise Agreement.
The aggregate number of Development Shops (including the First Development Shop) (collectively, referred to as the "Total Development Shops") that are authorized by this Agreement and required for development, subject to the terms of this Agreement and each respective Franchise Agreement, is set forth and defined in the Development Information Sheet.
The Development Area is and shall constitute the geographic area set forth and identified in the Development Information Sheet.
The Development Information Sheet is attached as Schedule A to this Agreement and is incorporated into and made a part of this Agreement. To be effective the Development Information Sheet must be completed and signed by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the definition of 'Development Area' can be found in Section 2.1 of the franchise agreement. This section outlines the development grant and obligations for the franchisee. Specifically, it states that the 'Development Area' constitutes the geographic area set forth and identified in the Development Information Sheet, which is attached as Schedule A to the agreement.
Section 2.1 further clarifies that the franchisee has the right and obligation to develop Beard Papa's Shops within this defined Development Area, provided they adhere to the Development Schedule and the terms of each respective Franchise Agreement. The aggregate number of Development Shops authorized is also defined in the Development Information Sheet.
In practical terms, this means a prospective Beard Papas franchisee should carefully review Section 2.1 and Schedule A (the Development Information Sheet) to understand the exact geographic boundaries of their Development Area and the number of shops they are obligated to develop. Failure to meet these development obligations, as outlined in the Development Schedule, can lead to termination of the agreement.