If a Beard Papas franchisee is dissolved, what happens to the franchise agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Shop that was the subject of this Agreement and cease to operate such Shop under the System;
- (2) Directly or indirectly, hold itself out to any person or entity, or represent itself, as a present or former Beard Papa's Shop franchisee;
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the Operations Manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or that constitute Franchisor's trade secrets; (c) System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products; and (e) any other advertising, marketing, media, and any other information, documents or things associated with Franchisor, the System, the Licensed Marks, Beard Papa's Shops, the Franchised Business, and Franchisee's former Beard Papa's Shop, including, without limitation, any confidential, proprietary methods, procedures, descriptions of products, techniques, trade secrets, recipes, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other things, tangible or intangible, associated with Franchisor, the System, the Licensed Marks, and Beard Papa's Shops;
- (4) Return to Franchisor the Operations Manual (including any and all parts, supplements, and copies of the Operations Manual), the Confidential Information (including without limitation the Business Management System Data and all customer lists and information), and all other confidential materials, equipment, software, information, and property owned by Franchisor and all copies thereof provided, however, that Franchisee may retain Franchisee's copies of this
Agreement, correspondence between Franchisor and Franchisee, but not including Confidential Information that may be contained in or attached thereto, and other documents that Franchisee needs to retain pursuant to applicable law;
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, upon the termination, transfer, or expiration of the Franchise Agreement for any reason, the franchisee must immediately cease operations as a Beard Papas franchise owner. This means they can no longer operate the shop under the Beard Papas system.
Furthermore, the franchisee is prohibited from representing themselves as a current or former Beard Papas franchisee. They must also cease using the Beard Papas system, which includes the confidential information, licensed marks, business management system data, and operations manual. This extends to methods, procedures, techniques, system supplies, approved services and products, and any advertising or marketing materials associated with Beard Papas.
The franchisee is also required to return the operations manual, confidential information (including business management system data and customer lists), and all other confidential materials, equipment, software, and property owned by Beard Papas. However, the franchisee can retain copies of the Franchise Agreement, correspondence between Beard Papas and the franchisee (excluding confidential information), and other documents required by applicable law.