What items in the Beard Papas Disclosure Document relate to site selection and acquisition/lease?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
tutes Franchisor's then current Franchise Agreement shall be determined by Franchisor, in Franchisor's exclusive discretion and that, among other things, the Franchise Agreement may be modified from time to time by Franchisor and that reasonable modification and amendments to the Franchise Agreement will not alter Franchisee's obligations under this Agreement.
5.4 COMPLIANCE WITH FRANCHISE AGREEMENTS
Franchisee will operate the Development Shops and all other Beard Papa's Shops in strict compliance with the terms and conditions of each respective Franchise Agreement.
5.5 SITE SELECTION
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.
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 pertain to site selection and acquisition. The Site Selection Acknowledgment outlines a limited period, typically 60 calendar days after the Site Selection Acknowledgment Date, during which Beard Papas will not grant another franchise within the designated Site Selection Area. However, this acknowledgment explicitly states that it does not guarantee approval of any restaurant location or grant any territorial rights to the franchisee.
The FDD emphasizes that franchisees are solely responsible for selecting their shop locations and must obtain written approval from Beard Papas for each potential site. Franchisees are expected to engage an experienced commercial real estate broker to assist in locating, acquiring, purchasing, or leasing the site. Beard Papas bears no obligation to assist in site selection or provide support in purchasing or leasing.
Furthermore, Beard Papas requires franchisees to submit information regarding proposed locations, including details on accessibility, visibility, traffic flow, lease terms, and demographic data, before any lease or purchase agreement is finalized. The franchisor retains the right to approve or disapprove any proposed location based on this information. Additionally, the document includes a Rider that supplements and amends the lease agreement between the landlord and tenant (franchisee), reinforcing the franchisor's rights as a third-party beneficiary, particularly regarding restrictions on transferring or assigning the lease without Beard Papas's prior written consent.