What is the latest possible date for the expiration of the Beard Papas Multi-Unit Development Agreement term?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Sections in Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Varies depending on the number of Shops to be developed and the Development Area. The agreement commences on the effective date and the term automatically expires at the earlier of the opening of the final Shop required for development, or the last day of the calendar month in which the final Shop was required to be open under the Multi-Unit Development Agreement. |
| b. | Renewal or extension of the | Not | There is no renewal of the Multi-Unit Development |
| term | applicable | Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the length of the Multi-Unit Development Agreement term varies based on the number of shops to be developed and the development area. The agreement begins on the effective date and automatically expires at the earlier of two conditions. The first condition is the opening of the final shop required for development. The second condition is the last day of the calendar month in which the final shop was required to be open under the Multi-Unit Development Agreement.
For a prospective Beard Papas multi-unit developer, this means the agreement's term is directly tied to their development schedule. If a developer opens all required shops ahead of schedule, the agreement ends when the final shop opens. Conversely, if a developer lags and only opens the final shop at the deadline, the agreement extends to the end of that calendar month. This provides a fixed endpoint based on the agreed-upon development timeline.
It is important to note that there is no option to renew or extend the Multi-Unit Development Agreement with Beard Papas. Therefore, developers must carefully consider their development capabilities and negotiate a realistic development schedule upfront, as failing to meet the schedule could lead to termination of the agreement. The expiration date is not a fixed number of years but rather depends on adherence to the development plan.
Therefore, the latest possible date for the expiration of the Beard Papas Multi-Unit Development Agreement term is the last day of the calendar month in which the final shop was required to be open under the Multi-Unit Development Agreement.