Which items in the Beard Papas Disclosure Document discuss site development and other pre-opening requirements?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be solely responsible for selecting the site(s) for the Franchisee's Shop Locations. In accordance with the terms and conditions of each respective Franchise Agreement, Franchisee must obtain Franchisor's prior written approval as to each potential Shop Location selected by Franchisee. Franchisee will retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating Shop sites to locate, acquire, purchase or lease the site for the Franchisee's Development Shops. Accordingly, no provision of this Agreement will be construed or interpreted to impose any obligation upon Franchisor to locate a site for the Development Shops, to assist Franchisee in the selection of a suitable site for the Development Shops, or to provide any assistance to the Franchisee in the purchase or lease of the site for the Development Shops.
5.6 SITE SELECTION CRITERIA
Franchisee will not lease, purchase or otherwise acquire a Shop Locations for the Development Shops until such information as Franchisor may require regarding the proposed site has been provided to Franchisor by Franchisee and has been approved by Franchisor. Information requested by Franchisor may include, without limitation, information regarding the proposed Shop Location as to accessibility, visibility, potential traffic flows, lease terms and other demographic information. Franchisee shall not enter into any lease or purchase agreement with respect to any proposed Shop Location until Franchisor has approved the site.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 30–31)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, several items address site development and pre-opening requirements. Item 5.5, "SITE SELECTION," states that the franchisee is solely responsible for selecting the site for their Beard Papas Shop location, but must obtain the Franchisor's prior written approval. The franchisee must also retain an experienced commercial real estate broker or salesperson to locate, acquire, purchase, or lease the site. The agreement specifies that the franchisor has no obligation to assist in site selection or acquisition. Item 5.6, "SITE SELECTION CRITERIA," further elaborates that the franchisee cannot lease, purchase, or acquire a shop location until the franchisor approves the site. The franchisor may request information regarding accessibility, visibility, potential traffic flows, lease terms, and other demographic information. The franchisee cannot enter into any lease or purchase agreement until the franchisor has approved the site.
Item 7, "ESTIMATED INITIAL INVESTMENT," provides cost estimates related to pre-opening requirements, including construction, leasehold improvements, and lease deposits. For a Kiosk Shop, the construction and leasehold improvements estimate assumes a shop size of 300 to 800 square feet and a pre-existing site with essential utilities and finishes. This estimate does not include architectural fees or special heating/cooling requirements. The lease deposit estimate is based on three months' rent. For a Stand-Alone Shop, the construction and leasehold improvements estimate assumes a shop size of 300 to 1,000 square feet, with similar assumptions about the pre-existing condition of the site. The lease deposit estimate is also based on three months' rent.
Additionally, Section 2.1, "DEVELOPMENT GRANT AND DEVELOPMENT OBLIGATIONS," outlines the franchisee's obligation to develop Beard Papa's Shops within a designated Development Area according to a Development Schedule. The Development Information Sheet, attached as Schedule A, specifies the geographic area and the number of shops required for development. Franchisees must open and maintain the minimum number of shops as per the Development Schedule, with failure to comply potentially leading to termination of the agreement. The Operations Manual also contains policies, procedures, and requirements for the development and operation of Beard Papa's Shops.