When does 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)
Based on the 2025 Beard Papas Franchise Disclosure Document, the exact expiration date of the office lease agreement is not specified within the provided excerpts. However, the FDD does address circumstances related to the lease agreement. Specifically, it outlines the franchisor's options and rights in the event of the franchise agreement's termination or expiration, tenant default, or failure to exercise an option period under the lease.
In such cases, Beard Papas has the option to assume or renew the lease, including the right to sublease the premises to another franchisee. If Beard Papas assumes the lease, they are not obligated to pay more than two months of past due rent, real estate taxes, and common area maintenance charges. Furthermore, the landlord agrees that the assignment or assumption of the lease by Beard Papas does not require their consent or any additional fees, nor can it result in increased rent or other charges.
Prospective franchisees should note that the FDD emphasizes the importance of the Lease Agreement Rider, which supplements and amends the lease. In case of any inconsistencies between the rider and the lease, the terms of the rider prevail. Additionally, the franchisee (tenant) is not permitted to transfer, sublease, encumber, or assign their interests in the lease without the prior written consent of Beard Papas. To gain a comprehensive understanding of the lease terms, including the expiration date and any renewal options, a prospective franchisee should request a full copy of the lease agreement and the Lease Agreement Rider from Beard Papas.