Does the geographic restriction on competitive businesses after termination of a Beard Papas franchise extend to the designated territory of other Beard Papa's Shops?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
You and each Owner and spouse must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), neither you nor your Owners and their spouses will participate in any competitive business located within and/or servicing customers located within your Designated Territory and a 25 mile radius surrounding your Designated Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 10 mile radius of any other Beard Papa's Shop and/or the designated territory of any other Beard Papa's Shop.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the geographic restriction on competitive businesses after the termination of a franchise extends to the designated territory of other Beard Papas shops. Specifically, the agreement states that for 24 months after the expiration or termination of the Franchise Agreement, the franchisee, their owners, and their spouses cannot participate in any competitive business located within or servicing customers within the franchisee's Designated Territory and a 25-mile radius surrounding it.
In addition to the franchisee's own territory, the restriction also applies to any competitive business located within or servicing customers within a 10-mile radius of any other Beard Papa's Shop and/or the designated territory of any other Beard Papa's Shop. This means that the post-term non-compete obligations are not limited to the franchisee's own designated area but also extend to other existing Beard Papa's locations and their territories.
This provision is significant for prospective franchisees as it limits their ability to engage in a competitive business after leaving the Beard Papas system. The restrictions cover not only their own designated territory and surrounding area but also a buffer zone around other Beard Papa's shops. Franchisees should carefully consider these limitations and how they might impact their future business opportunities before entering into a franchise agreement with Beard Papas.