What are the future minimum rental payments for Beard Papas in 2027?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the occurrence of (a) the termination, for any reason, of the Franchise Agreement; (b) the expiration, without renewal, of the Franchise Agreement; (c) Franchisor's exercise of Franchisor's Right of First Refusal granted to Franchisor in the Franchise Agreement; (d) Tenant's default under the terms of the Lease; and/or (e) Tenant's failure to exercise an option period under the terms of the Lease, Tenant and Landlord acknowledge and agree, that:
Franchisor will have the option, but not the obligation, to assume or renew the Lease and the occupancy of the Leased Premises, including the right to sublease to another Franchisee of the Beard Papa's Franchise System, for all or any part of the remaining term of the Lease and, in connection with said assumption, Franchisor will not be obligated to pay to Landlord more than two months past due rent, real estate taxes and common area maintenance charges. In the event Franchisor assumes Tenant's leasehold interest in the Lease pursuant to the terms of this Agreement and subsequently assigns the Lease and its leasehold interest to a Beard Papa's franchisee approved by Landlord, Franchisor shall not be responsible for any obligations, debts, liabilities or payments arising and/or accruing under the Lease after the effective date of such assignment. Landlord agrees that any assignment of the Lease and Tenant's leasehold interests in the Lease by Tenant to Franchisor and/or assumption by Franchisor of the Lease and such leasehold interests shall not require Landlord consent and shall not require any payment of any assignment fee or similar charge or result in any increase in rent or other fees as a result of such assignment and/or assumption.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document, the document does not specify the exact minimum rental payments for 2027. However, it does address the circumstances under which Beard Papas, as the Franchisor, might assume or renew a lease.
Specifically, if a franchisee's agreement is terminated, expires without renewal, or if the franchisee defaults on the lease, Beard Papas has the option to assume the lease. In such cases, Beard Papas would not be obligated to pay the landlord more than two months of past due rent, real estate taxes, and common area maintenance charges. Additionally, the landlord agrees that if the lease is assigned to Beard Papas, no consent is required, and there will be no increase in rent or other fees as a result of the assignment or assumption.
For a prospective Beard Papas franchisee, this means that while the FDD doesn't provide specific rental payment amounts for future years like 2027, it does outline the franchisor's potential involvement in lease matters under certain conditions. To obtain precise details regarding future minimum rental payments, a prospective franchisee should directly inquire with Beard Papas about typical lease terms, average rental costs for similar locations, and any projected rent increases for the term of the franchise agreement.