Does the Beard Papas Multi-Unit Development Agreement provide for renewal or extension of the term?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
u should read these provisions in the agreements attached to this Disclosure 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. | |
| c. | Requirements for franchisee | Not | There is no renewal of the Multi-Unit Development |
| to renew or extend | applicable | Agreement. | |
| d. | Termination by franchisee | Not applicable | There is no option for your termination of the Multi-Unit Development Agreement. Subject to state law. |
| e. | Termination by franchisor | Not | We can terminate without cause only if you and we |
| without cause | applicable | mutually agree, in writing, to terminate. | |
| f. | Termination by franchisor with "cause" | 3.2 | We may terminate your Multi-Unit Development Agreement with cause. |
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 Multi-Unit Development Agreement does not offer renewal or extension options. The agreement's term length varies based on the number of shops to be developed and the development area. The agreement commences on the effective date and automatically expires when the final shop required for development opens or on the last day of the calendar month in which the final shop was required to open, whichever comes first.
This means that once a Beard Papas multi-unit developer has fulfilled their development obligations, or the deadline to do so has passed, the development agreement concludes without an option to extend the relationship under the same agreement. The franchisee loses all rights under the Multi-Unit Development Agreement, as there are no renewal rights.
This is a notable point for prospective multi-unit developers, as they should be aware that their rights to develop within the designated area are finite and tied to the initial development schedule. If a developer wishes to continue expanding with Beard Papas beyond the scope of the original agreement, they would need to negotiate a new agreement with the franchisor, which may or may not be granted. This contrasts with standard franchise agreements, which often include options for renewal if certain conditions are met.