What requirements must a Beard Papas Managing Owner meet?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISE BUSINESS**
The Franchise Agreement requires that you or, if you are a Corporate Entity, your designated managing shareholder, member or partner (your "Managing Owner") be personally responsible for the management and overall supervision of your Shop. Your Managing Owner must complete, to our satisfaction, our initial training program and be approved by us. While we recommend that your Managing Owner personally participate in the day-to-day management and on-site supervision and operations of your Shop, you may hire an operating manager to supervise and manage the day-to-day on-site operations of your Shop provided that your operating manager: (a) meets all of our minimum standards and criteria for managers; (b) completes our initial training program; and (c) signs our confidentiality agreements (an "Operating Manager"). At all times, your Shop must be managed and supervised on-site by either a Managing Owner or Operating Manager. If you own and operate multiple Shops then each Shop must be managed and supervised on-site by an Operating Manager.
You and, if you are a Corporate Entity, each of your members, shareholders and/or partners (collectively, "Owners"), must personally guarantee all of your obligations to us under the Franchise Agreement. Each Owner and the spouse of each Owner must personally guarantee your obligations to us under the Franchise Agreement. You and each Owner and spouse must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), neither you nor your Owners and their spouses will participate in any competitive business located within and/or servicing customers located within your Designated Territory and a 25 mile radius surrounding your Designated Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 10 mile radius of any other Beard Papa's Shop and/or the designated territory of any other Beard Papa's Shop. Your managers and all other employees and agents with access to our confidential information will be required by us to sign a confidentiality agreement.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You may only sell the Approved Services and Products as specified in the Manuals or otherwise approved by us in writing and may only sell the products and services required by us. We can change the products and services that you must offer.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, a Managing Owner must be personally responsible for the management and overall supervision of their shop. The Managing Owner must also complete Beard Papas's initial training program to the franchisor's satisfaction and be approved by them. The Managing Owner must also possess, maintain, and own not less than 25% of the equity and ownership interests in the franchisee.
While Beard Papas recommends that the Managing Owner personally participate in the day-to-day management and on-site supervision and operations of the shop, the franchisee can hire an operating manager to handle these tasks, provided that the operating manager meets Beard Papas's minimum standards and criteria for managers, completes the initial training program, and signs the confidentiality agreements. However, at all times, the shop must be managed and supervised on-site by either a Managing Owner or an Operating Manager.
Furthermore, the franchisee and each of their members, shareholders, and/or partners (collectively, "Owners") must personally guarantee all obligations to Beard Papas under the Franchise Agreement. Each Owner and the spouse of each Owner must also personally guarantee these obligations. Additionally, during the term of the Franchise Agreement and for 24 months after its expiration or termination, the Owners and their spouses are restricted from participating in any competitive business within the Designated Territory and a 25-mile radius, as well as within a 10-mile radius of any other Beard Papa's shop.