Are non-competition covenants after the franchise is terminated or expires applicable to Beard Papas Multi-Unit Development Agreements?

According to Beard Papas's 2025 Franchise Disclosure Document, non-competition covenants after the franchise is terminated or expires are not applicable to the Multi-Unit Development Agreement itself. However, this does not mean there are no restrictions. The FDD states that each Beard Papas shop developed under the Multi-Unit Development Agreement will be subject to the non-competition covenants outlined in its respective Franchise Agreement. This means that while the development agreement isn't directly subject to these covenants, the individual franchise agreements for each shop you develop will be.

Specifically, after the termination or expiration of a Beard Papas franchise, the franchisee is restricted from any involvement, ownership, or interest in a competing business for 24 months. This restriction applies within the Designated Territory of the terminated franchise, a 25-mile radius around that territory, and a 10-mile radius around any other Beard Papas shop's Designated Territory. Additionally, franchisees must continue to comply with confidentiality, non-disclosure, and non-solicitation covenants.

Therefore, if you are considering a Multi-Unit Development Agreement with Beard Papas, it's crucial to understand the non-competition terms within the standard Franchise Agreement, as those will apply to each shop you develop. This could significantly impact your future business opportunities after your franchise agreement ends, so careful consideration is warranted.