Does the personal liability of a Beard Papas franchisee extend to payments and monetary obligations due to Beard Papas' affiliates under the Ancillary Agreements?

According to the 2025 Beard Papas Franchise Disclosure Document, when transferring a franchise, all obligations of the franchisee under both the Franchise Agreement and any Ancillary Agreements must be assumed by the transferee. This includes each individual owner of the transferee, and their respective spouses, in a manner that is satisfactory to Beard Papas. This indicates that the financial obligations extend beyond just the franchisee to include owners and spouses.

Furthermore, before a transfer is approved, all accrued monetary obligations of the franchisee and all other outstanding obligations to Beard Papas and/or its affiliates under the Franchise Agreement and the Ancillary Agreements must be satisfied in a timely manner. This means that any debts or financial responsibilities to Beard Papas or its affiliates must be cleared before the franchise can be transferred to a new owner.

In practical terms, a prospective Beard Papas franchisee should understand that their financial obligations, and potentially those of their owners and spouses, extend not only to Beard Papas itself but also to its affiliates through the Ancillary Agreements. This liability is a key consideration during the transfer process, as all debts must be settled before the transfer can proceed.