What are Beard Papas' obligations regarding property insurance for the leased office space?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
5.5 SITE SELECTION
Franchisee will be solely responsible for selecting the site(s) for the Franchisee's Shop Locations. In accordance with the terms and conditions of each respective Franchise Agreement, Franchisee must obtain Franchisor's prior written approval as to each potential Shop Location selected by Franchisee. Franchisee will retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating Shop sites to locate, acquire, purchase or lease the site for the Franchisee's Development Shops. Accordingly, no provision of this Agreement will be construed or interpreted to impose any obligation upon Franchisor to locate a site for the Development Shops, to assist Franchisee in the selection of a suitable site for the Development Shops, or to provide any assistance to the Franchisee in the purchase or lease of the site for the Development Shops.
5.6 SITE SELECTION CRITERIA
Franchisee will not lease, purchase or otherwise acquire a Shop Locations for the Development Shops until such information as Franchisor may require regarding the proposed site has been provided to Franchisor by Franchisee and has been approved by Franchisor. Information requested by Franchisor may include, without limitation, information regarding the proposed Shop Location as to accessibility, visibility, potential traffic flows, lease terms and other demographic information. Franchisee shall not enter into any lease or purchase agreement with respect to any proposed Shop Location until Franchisor has approved the site.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Beard Papas franchisees are primarily responsible for selecting and securing their shop locations. The FDD states that the franchisee is solely responsible for site selection. This includes finding, acquiring, purchasing, or leasing the site for their Beard Papa's shop. Franchisees often work with experienced commercial real estate brokers to assist in this process. Beard Papa's does not have an obligation to assist franchisees in locating a site for the Development Shops, or to provide any assistance to the Franchisee in the purchase or lease of the site for the Development Shops.
Before a franchisee can finalize a location, Beard Papa's requires the franchisee to submit information about the proposed site for approval. This information can include details regarding accessibility, visibility, potential traffic flows, and lease terms. The franchisee cannot enter into any lease or purchase agreement until Beard Papa's has approved the site.
The excerpts from the FDD do not specify who is responsible for obtaining and maintaining property insurance for the leased space. It is typical in franchise agreements for the franchisee to be responsible for obtaining and maintaining adequate insurance coverage, including property insurance, to protect the business and the leased premises. A prospective franchisee should clarify the insurance requirements with Beard Papa's during their due diligence process.