Can the Beard Papas Franchise Agreement be modified?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| th confidentiality, non- disclosure and non-solicitation covenants. | ||
|---|---|---|
| s. Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral |
| changes that we may make to the Manuals or our unilateral | ||
| reduction of the scope of a restrictive covenant that we may | ||
| make in our discretion. | ||
| t. Integration/merger clauses | 18.M. | Only the terms of the Franchise Agreement and schedules to |
| the Franchise Agreement and the respective signed exhibits | ||
| to the Franchise Agreement are binding, subject to state | ||
| law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the Franchise Agreement can generally only be modified through a written agreement signed by both the franchisee and Beard Papas. However, Beard Papas retains the right to make unilateral changes to the Manuals, which likely contain operational procedures and standards. Additionally, Beard Papas can unilaterally reduce the scope of a restrictive covenant at their discretion. This means that while significant changes to the core agreement require mutual consent, Beard Papas has some flexibility to adjust operational guidelines and non-compete terms.
For franchisees considering a Multi-Unit Development Agreement with Beard Papas, modifications are also addressed. Changes to the Multi-Unit Development Agreement require a written agreement between the franchisee and Beard Papas, or if required by governing law. Beard Papas can alter the Franchise Agreement form for future shops developed under the Multi-Unit Development Agreement, but these changes cannot alter the franchisee's obligations under the existing Multi-Unit Development Agreement. This provides a level of stability for the franchisee's existing commitments while allowing Beard Papas to update the standard franchise terms for new locations.
These stipulations are typical in franchising, where franchisors need the ability to update their systems and manuals to maintain brand standards and adapt to changing market conditions. However, the requirement for written consent for significant modifications protects the franchisee from arbitrary changes to the core terms of the agreement. Prospective franchisees should carefully review the Beard Papas Franchise Agreement and any related agreements to understand the full scope of their obligations and the franchisor's rights to make changes.