When will the Beard Papas office lease agreement expire?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the occurrence of (a) the termination, for any reason, of the Franchise Agreement; (b) the expiration, without renewal, of the Franchise Agreement; (c) Franchisor's exercise of Franchisor's Right of First Refusal granted to Franchisor in the Franchise Agreement; (d) Tenant's default under the terms of the Lease; and/or (e) Tenant's failure to exercise an option period under the terms of the Lease, Tenant and Landlord acknowledge and agree, that:
Franchisor will have the option, but not the obligation, to assume or renew the Lease and the occupancy of the Leased Premises, including the right to sublease to another Franchisee of the Beard Papa's Franchise System, for all or any part of the remaining term of the Lease and, in connection with said assumption, Franchisor will not be obligated to pay to Landlord more than two months past due rent, real estate taxes and common area maintenance charges. In the event Franchisor assumes Tenant's leasehold interest in the Lease pursuant to the terms of this Agreement and subsequently assigns the Lease and its leasehold interest to a Beard Papa's franchisee approved by Landlord, Franchisor shall not be responsible for any obligations, debts, liabilities or payments arising and/or accruing under the Lease after the effective date of such assignment. Landlord agrees that any assignment of the Lease and Tenant's leasehold interests in the Lease by Tenant to Franchisor and/or assumption by Franchisor of the Lease and such leasehold interests shall not require Landlord consent and shall not require any payment of any assignment fee or similar charge or result in any increase in rent or other fees as a result of such assignment and/or assumption.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document does not specify the exact expiration date of the Beard Papas office lease agreement. However, it does outline certain conditions related to the lease. Specifically, if the Franchise Agreement is terminated or expires without renewal, or if the franchisee defaults on the lease, Beard Papas has the option to assume or renew the lease.
Beard Papas's option to assume the lease includes the right to sublease the premises to another franchisee. If Beard Papas assumes the lease, they are only obligated to pay up to two months of past due rent, real estate taxes, and common area maintenance charges. Furthermore, if Beard Papas assigns the lease to another approved franchisee, Beard Papas will not be responsible for any obligations arising after the assignment's effective date.
The lease agreement also stipulates that the landlord must allow Beard Papas to assume or assign the lease without requiring consent, assignment fees, or increased rent. This provision ensures that Beard Papas can maintain control over the location and continue operations under a new franchisee if necessary. A prospective franchisee should inquire with Beard Papas about the standard lease terms and typical duration of these agreements to better understand their long-term obligations and potential renewal options.