What must a Beard Papas franchisee do if they learn of any unauthorized use of the Manuals?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
could jeopardize the entire System and cause irreparable harm to Franchisor and franchisees of Beard Papa's Shops. Accordingly, Franchisee and Franchisee's Owners and, Spouses agree to comply with the restrictive covenants set forth in this Article 6 and throughout this Agreement.
6.B. RESTRICTIVE COVENANTS: KNOW-HOW
Franchisee agrees that, at all times, both during the Term of this Agreement and, after its expiration or termination, Franchisee: (a) shall not use the Know-How in any business or capacity other than the operation of the Franchised Business pursuant to this Agreement and as instructed by Franchisor; (b) shall maintain the confidentiality of the Know-How at all times; (c) shall not make unauthorized copies of documents containing any Know-How; (d) shall take all reasonable steps that Franchisor requires from time to time to prevent unauthorized use or disclosure of the Know-How; and (e) shall stop using the Know-How immediately upon the expiration, termination or Transfer of this Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, franchisees have specific obligations regarding the confidentiality and proper use of the Operations Manual. The Operations Manual contains the policies, procedures, and requirements for developing and operating a Beard Papas shop. It may include volumes, handbooks, written materials, videos, electronic media files, and other materials that Beard Papas may modify over time.
The Beard Papas franchisee must take all reasonable steps that Beard Papas requires to prevent unauthorized use or disclosure of the Know-How. Know-How includes current and future information contained in the Operations Manual.
Moreover, the franchisee must immediately notify Beard Papas in writing of any cause of action, claim, lawsuit, proceeding, or investigation concerning the franchisee, the franchised business, the shop location, or the shop facility. This would include any unauthorized use of the Operations Manual or other confidential information related to the Beard Papas system. This obligation extends both during the term of the Franchise Agreement and after its expiration or termination.