Can Beard Papas refuse to renew a franchise on terms generally available to other franchisees?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Amendments to the Beard Papa's Franchise Disclosure Document
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
- A. The Rhode Island Franchise Investment Act, R.I. Gen. Law Ch. 395 Sec. 19-28.1-14 provides that a provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
- B. Any general release as a condition of renewal, termination or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
Virginia FDD Amendment
Amendments to the Beard Papa's Franchise Disclosure Document
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17(h) is supplemented by the addition of the following:
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document, the franchisor's ability to refuse renewal of a franchise is subject to certain state laws. For instance, a Michigan amendment specifies that Beard Papas cannot refuse to renew a franchise without fairly compensating the franchisee for the fair market value of inventory, supplies, equipment, fixtures, and furnishings at the time of expiration. This protection applies if the franchise term is less than five years and the franchisee is restricted from operating a similar business in the same area after the franchise expires, or if the franchisee does not receive at least six months' advance notice of non-renewal.
In Washington, the Washington Franchise Investment Protection Act may supersede the franchise agreement regarding termination and renewal. Similarly, in North Dakota, provisions requiring franchisees to sign a general release upon renewal are not enforceable. These state-specific amendments indicate that Beard Papas's standard franchise agreement is modified by state laws to protect franchisees in certain situations.
In Rhode Island, any general release as a condition of renewal is void with respect to claims under the Rhode Island Franchise Investment Act. Therefore, Beard Papas franchisees need to be aware of the specific protections afforded to them by the laws of their state, as these can significantly impact the terms under which a franchise can be renewed or terminated.