Is mutual agreement required for Beard Papas to terminate the Multi-Unit Development Agreement without cause?
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. | |
| 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. |
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, Beard Papas can only terminate the Multi-Unit Development Agreement without cause if both Beard Papas and the franchisee mutually agree to the termination in writing. This requirement protects the franchisee from arbitrary termination without a specific breach of contract.
This stipulation means that Beard Papas cannot unilaterally decide to end the agreement without a documented, mutual decision. For a prospective multi-unit developer, this provides a degree of security, ensuring that their investment and development plans cannot be disrupted without their consent, unless Beard Papas has cause as defined in the agreement.
It is important for a potential Beard Papas franchisee to understand the conditions under which Beard Papas can terminate the agreement with cause, as those situations would not require the franchisee's consent. These conditions are outlined in detail within the Multi-Unit Development Agreement and should be carefully reviewed with legal counsel.