Which Franchise Agreement is signed simultaneously with the Beard Papas Multi-Unit Development Agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise specified, the information contained in this Disclosure Document applies to single unit development under a Franchise Agreement and multi-unit development under a Multi-Unit Development Agreement. If you are not contracting for the right to develop multiple Shops, you will not be signing a Multi-Unit Development Agreement. Even if you sign a Multi-Unit Development Agreement, you will also be signing individual Shop Franchise Agreements with the first Shop Franchise Agreement being the Franchise Agreement attached to this Disclosure Document as Exhibit E and signed simultaneous with the signing of the Multi-Unit Development Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–10)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, if a franchisee signs a Multi-Unit Development Agreement, they will also sign an individual Shop Franchise Agreement. This initial Shop Franchise Agreement is attached to the Disclosure Document as Exhibit E. This agreement is signed at the same time as the Multi-Unit Development Agreement.
This means that even if a franchisee is planning to open multiple Beard Papas locations, they must first enter into an agreement for a single shop. This initial agreement likely serves as a test or pilot for both the franchisee and the franchisor to ensure compatibility and operational success before expanding to multiple units. The individual Shop Franchise Agreement outlines the terms and conditions for operating a single Beard Papas shop, including the location, system standards, and approved products and services.
Prospective franchisees should carefully review Exhibit E of the FDD to understand the obligations and responsibilities outlined in the individual Shop Franchise Agreement. This includes understanding the initial investment, ongoing fees, and operational requirements for a single Beard Papas location. It is also important to note that the individual unit Franchise Agreement that governs subsequent shops opened under the Multi-Unit Development Agreement may differ from the Franchise Agreement included as Exhibit E.