How are modifications to the Beard Papas agreement applied geographically?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
y statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this New York amendment to the Muginoho International, Inc. Franchise Agreement and, if applicable, the Development Agreement on the same date as the Franchise Agreement and Development Agreement were, respectively, executed.
| Franchisor: Muginoho International, Inc. | Franchisee: | |
|---|---|---|
| Signature | Signature | |
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT
Amendments to the Beard Papa's Franchise Agreement
In recognition of the North Dakota Franchise Investment Law, Section 51-19, the parties to the attached Muginoho International, Inc. Franchise Agreement (the "Franchise Agreement") agree as follows:
The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Beard Papa's Shop outlet will be located within the State of North Dakota.
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- Article 15 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota."
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- Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."
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- Articles 6 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota franchisees, North Dakota law shall apply."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."
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- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of North Dakota Law are met independently without reference to this amendment.
IN WITNESS WHEREOF, the parties have duly executed and delivered this North Dakota amendment to the Muginoho International, Inc. Franchise Agreement a on the same date as the Franchise Agreement was executed.
| Franchisor: Muginoho International, Inc.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, modifications to the franchise agreement are applied geographically through state-specific addenda. For example, the FDD includes a North Dakota Franchise Agreement Amendment that modifies specific articles of the standard franchise agreement to comply with North Dakota law. These modifications address provisions related to general releases upon renewal, consent to termination or liquidated damages, covenants not to compete, jurisdiction of courts, choice of law, waiver of trial by jury, and waiver of exemplary and punitive damages. These amendments are only applicable if the franchisee is a resident of North Dakota or if the Beard Papa's shop will be located within North Dakota.
Similarly, the FDD includes an Illinois Franchise and Development Agreement Amendment. This amendment modifies articles of the franchise agreement and sections of the development agreement to align with the Illinois Franchise Disclosure Act. The modifications specify that Illinois law governs the agreements and address venue stipulations, rights upon termination and non-renewal, and waivers of compliance with Illinois law.
These state-specific amendments indicate that Beard Papas tailors its franchise agreements to comply with local laws, ensuring that franchisees are not subject to terms that are unenforceable or violate state regulations. Prospective franchisees should carefully review any state-specific addenda applicable to their location to understand how the standard franchise agreement is modified in their jurisdiction. This approach is common in franchising, as franchise laws vary significantly from state to state, and franchisors must adapt their agreements accordingly.