According to Beard Papas's 2025 Franchise Disclosure Document, Section 5.1 outlines the franchisee's obligation to execute franchise agreements. For each Beard Papa's Shop that a franchisee owns, develops, and opens within their designated Development Area, they must execute the franchisor's current standard Franchise Agreement. This ensures that each shop operates under the most up-to-date terms and conditions set by Beard Papas. The agreement solidifies the relationship and obligations for each specific location. This requirement applies to every Development Shop the franchisee opens.

The franchisee must execute the current standard Franchise Agreement on or before the earliest of three dates. The first is the date the franchisee executes a lease for the shop location, subject to the franchisor's approval of the location. The second is the date the franchisee enters into a purchase agreement for the real estate of the shop location, again subject to the franchisor's approval. The third is six months prior to the date that each shop must be open and operating, as defined by the Development Schedule.

This requirement ensures that Beard Papas franchisees are committed to the brand's standards and legal obligations from the earliest stages of development. By requiring the execution of a franchise agreement before a lease or purchase agreement is finalized, Beard Papas maintains control over location selection and operational standards. The six-month deadline prior to opening provides a clear timeline for compliance. This is a fairly standard practice in franchising, as franchisors need to ensure each location is legally bound to the franchise system before it begins operations.