When does the Beard Papas Multi-Unit Development Agreement term automatically expire?
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 Multi-Unit Development Agreement term's length varies based on the number of shops to be developed and the development area. The agreement begins on its effective date.
The term automatically expires at whichever comes first: 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.
This means a prospective Beard Papas multi-unit developer needs to carefully consider the development schedule and area. The agreement does not run for a set number of years but is tied to the completion of the development plan. If a franchisee opens all required locations early, the agreement ends sooner. Conversely, if there are delays, the agreement extends until the final deadline for opening the last shop. There is no option to renew or extend the Multi-Unit Development Agreement.