What level of involvement is required of the Managing Owner in the Beard Papas Franchised Business?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
ty, shall be determinative as between Franchisor and Franchisee and the operations of the Franchised Business.
7.J. MANAGEMENT OF RESTAURANT
- (1) Franchisee agrees that critical to the success of the Franchised Business is the active, continuing and substantial personal involvement and hands-on supervision of Franchisee's Managing Owner. At all times, Franchisee's Beard Papa's Shop must be under the active, continuing and substantial personal involvement and hands-on supervision of Franchisee's Managing Owner. The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless Franchisee delegates management functions to an authorized Operating Manager who, among other things, satisfactorily completed Franchisor's Training Program and has otherwise meet the criteria and conditions for qualification as an Operating Manager. If the Operating Manager is a family member of Franchisee and/or an Owner then the Operating Manager must also sign and agree to be bound by the terms of the Owner and Spouse Agreement and Guaranty.
- (2) Franchisee must, at all times, faithfully, honestly and diligently perform its obligations hereunder, and continuously exert its best efforts to promote and enhance the business of the Franchised Business and the goodwill of the Licensed Marks.
- (3) If, at any time, the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the Managing Owner must have active, continuing, and substantial personal involvement and hands-on supervision in the Beard Papa's shop. The Beard Papa's shop must be under this supervision at all times. The Managing Owner must also possess, maintain, and own at least 25% of the equity and ownership interests in the Franchisee. The Managing Owner must manage the operations of the franchised business at all times.
However, the Managing Owner can delegate management functions to an authorized Operating Manager if the Operating Manager satisfactorily completes Beard Papas's Training Program and meets the criteria for qualification as an Operating Manager. If the Operating Manager is a family member of the Franchisee or an Owner, they must also sign and agree to be bound by the terms of the Owner and Spouse Agreement and Guaranty.
If the Franchised Business is not being managed by a Managing Owner or Operating Manager who has completed the Training Program, Beard Papas is authorized to appoint a manager to maintain the operations of the Franchised Business on behalf of the Franchisee. This appointment does not relieve the Franchisee of their obligations or waive Beard Papas's right to terminate the franchise agreement. Beard Papas can also charge fees and expenses for these management services.