What happens if Beard Papas designates that a trademark will not be used by the franchisee?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
If any third party establishes, to our satisfaction and in our discretion that its rights to the Licensed Marks are, for any legal reason, superior to any of our rights or of a nature that we believe, in our discretion, that it is advisable to discontinue and/or modify the Licensed Marks, then we will modify and/or replace the Licensed Marks and you must use the substitutions, replacements and/or variations of and/or to the Licensed Marks and use the those trademarks, service marks, logos and trade names required and designated by us. In such event, our sole liability and obligation will be to reimburse you for the direct out-of-pocket costs of complying with this obligation, which you must document to our satisfaction, including, by way of example, alterations in signage and replacement of marketing materials.
Source: Item 13 — TRADEMARKS (FDD pages 40–42)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, franchisees are granted a license to use the "Beard Papa's" trademark and other designated marks. Beard Papas retains the right to modify the marks that franchisees may or may not use in connection with their shop operations. Franchisees are only allowed to use the licensed marks as authorized by Beard Papas in writing and under the terms of the Franchise Agreement.
If a third party establishes rights to the Licensed Marks that are superior to Beard Papas's rights, or if Beard Papas believes it is advisable to discontinue or modify the Licensed Marks, Beard Papas will modify or replace the Licensed Marks. In this case, franchisees must use the substitutions, replacements, or variations of the Licensed Marks as required and designated by Beard Papas.
Beard Papas's sole liability in such an event is to reimburse the franchisee for the direct out-of-pocket costs of complying with the obligation to change the marks. These costs, which must be documented to Beard Papas's satisfaction, include alterations in signage and replacement of marketing materials. This means that while franchisees are required to comply with changes to the trademarks, Beard Papas will cover the direct costs associated with making those changes, providing some financial protection to the franchisee.