Does Beard Papas grant franchisees an exclusive territory?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Under the Franchise Agreement, once you identify a site that we approve for your Shop Location we will designate an area around your site as your designated territory (the "Designated Territory"). There is no minimum size for a designated territory, the scope and size of your Designated Territory will, generally, be a distance of two to five miles from the Shop Location in all directions travelable by road, but may be smaller based on population density, demographics, and geographical boundaries. If your Shop is located within a nontraditional location or a captive market type facility, such as a shopping mall, stadium, amusement park, airport, university, or a similar facility with a captive market, your Designated Territory may be limited to the physical boundaries of the non-traditional location or captive facility. Depending on the demographics and geography we may designate your Designated Territory where your Shop is located at the center of the Designated Territory or where your Shop is located elsewhere within the Designated Territory. We may identify your Designated Territory by zip code, boundary streets, highways, county lines, designated market area, and/or other recognizable demarcations.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, franchisees do not receive an exclusive territory. While Beard Papas designates a territory around the franchisee's approved shop location, this territory is not exclusive. Franchisees may face competition from other franchisees, outlets owned by Beard Papas, other distribution channels, or competitive brands controlled by Beard Papas.
Once a site is approved, Beard Papas will designate an area around the site as the franchisee's designated territory. The size of this designated territory typically ranges from two to five miles in all directions travelable by road, but it may be smaller depending on factors like population density, demographics, and geographical boundaries. For shops in non-traditional locations like malls or airports, the designated territory may be limited to the physical boundaries of that location.
Beard Papas retains significant rights within and outside a franchisee's designated territory. They reserve the right to operate or franchise other shops, develop businesses with similar products (though not using Beard Papas's licensed marks), and utilize alternative distribution channels like the internet or wholesale, without compensating the franchisee. Franchisees are restricted from soliciting or accepting orders from consumers outside their designated territory and must focus their marketing efforts within their territory.