Does Beard Papas Franchisor's approval of a transfer constitute approval of future transfers?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- (16) Franchisee and transferee acknowledge and agree that Franchisor's approval of the Transfer at issue does not constitute Franchisor's approval of future or other Transfers or the waiver of the requirement that Franchisor must approve such future or other Transfers in accordance with this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the franchisor's approval of a transfer does not constitute approval of future transfers. The document states that each transfer requires separate approval from Beard Papas. This means that even if a franchisee is approved to transfer their franchise to a new owner, that approval does not guarantee that any subsequent transfer by that new owner will also be approved.
This condition is typical in franchising, as franchisors want to maintain control over who operates their branded locations. Each potential transferee must meet the franchisor's then-current standards. This protects the brand and ensures that all franchisees meet the required qualifications.
For a prospective Beard Papas franchisee, this means that if they plan to sell their franchise in the future, they will need to go through the approval process with Beard Papas again, regardless of whether a previous transfer was approved. This also means that the potential buyer must also meet the then-current standards for franchisees.