Does Beard Papas grant franchisees options to acquire additional franchises?

According to Beard Papas's 2025 Franchise Disclosure Document, franchisees are not granted any options, rights of first refusal, or similar rights to acquire additional franchises. This means that a franchisee cannot be guaranteed the opportunity to open additional Beard Papas locations beyond their initial franchise agreement unless they enter into a Multi-Unit Development Agreement.

However, Beard Papas may enter into a Multi-Unit Development Agreement with a franchisee, granting the right to develop a mutually agreed-upon number of Beard Papa's Shops within a specified Development Area, subject to an agreed-upon Development Schedule. The first shop developed under this agreement is governed by the standard Franchise Agreement, and subsequent shops require signing the then-current Franchise Agreement. The size of the Development Area varies and depends on factors like the Development Schedule, system development plans, and market demographics.

It is important to note that even with a Multi-Unit Development Agreement, the right to develop additional shops is contingent upon timely compliance with the Development Schedule and the terms of all agreements with Beard Papas. Approval of future shop locations and their designated territories will be based on Beard Papas's current site and territory criteria. The designation of a Development Area does not guarantee a sufficient number of suitable sites for shops to meet the Minimum Performance Schedule, and failure to meet the Development Schedule may result in termination of the Multi-Unit Development Agreement.

In summary, while franchisees do not have guaranteed options or rights of first refusal for additional franchises, they can pursue a Multi-Unit Development Agreement to expand their presence, subject to Beard Papas's approval and adherence to specific development terms and schedules.