What is the 'Post-Term Restricted Period' for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
"Restricted Territory" refers to and means the geographic area: (a) comprising Franchisee's Designated Territory; (b) comprising a 25 mile radius surrounding Franchisee's Designated Territory or, if Franchisee is not granted or designated a designated territory, then a 25 mile radius surrounding Franchisee's Shop Location; (c) comprising a 10 mile radius surrounding the Shop Locations for all other Beard Papa's Shops operating and/or under development as of the Effective Date of this Agreement; and (d) comprising a 10 mile radius surrounding the Shop Locations for all other Beard Papa's Shops that are in operation or under development during all or any part of the Post-Term
Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area comprising Franchisee's Designated Territory plus a 25 mile radius surrounding Franchisee's Designated Territory or, if Franchisee is not granted or designated a designated territory, then a 25 mile radius surrounding Franchisee's Shop Location.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the 'Post-Term Restricted Period' is relevant to defining the 'Restricted Territory'. The Restricted Territory includes areas around the franchisee's Designated Territory or Shop Location, as well as areas around other Beard Papa's shops.
Specifically, the Restricted Territory includes a 10-mile radius around the Shop Locations for all other Beard Papa's Shops that are in operation or under development during all or any part of the Post-Term Restricted Period. This means that after the franchise agreement ends, the franchisee may be restricted from operating a competing business within this defined area.
It is important to note that the definition of 'Restricted Territory' may be subject to judicial review, and a court could determine that the defined area is too broad to be enforceable. In such a case, the Restricted Territory would default to the franchisee's Designated Territory plus a 25-mile radius around it, or if there is no designated territory, a 25-mile radius around the Shop Location. The FDD does not specify the duration of the Post-Term Restricted Period.