Does Beard Papas reserve the right to change the trademarks that franchisees can use?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the terms of the Franchise Agreement, you will be granted a license to use the "Beard Papa's" trademark and those other marks that we designate. Our affiliate DAY TO LIFE CO., Ltd. is the owner of the Licensed Marks and has granted to us a license to use the Licensed Marks and to license our franchisees to use the Licensed Marks (the "License Agreement"). We reserve the right to supplement and modify the marks that you may or may not use in connection with the operations of your Shop. You may only use the Licensed Marks as authorized by us in writing and under the terms of your Franchise Agreement. You may not use the Licensed Marks in the name of any Corporate Entity that you establish.
If any third party establishes, to our satisfaction and in our discretion that its rights to the Licensed Marks are, for any legal reason, superior to any of our rights or of a nature that we believe, in our discretion, that it is advisable to discontinue and/or modify the Licensed Marks, then we will modify and/or replace the Licensed Marks and you must use the substitutions, replacements and/or variations of and/or to the Licensed Marks and use the those trademarks, service marks, logos and trade names required and designated by us. In such event, our sole liability and obligation will be to reimburse you for the direct out-of-pocket costs of complying with this obligation, which you must document to our satisfaction, including, by way of example, alterations in signage and replacement of marketing materials.
We will protect your right to use the Licensed Marks and other related rights and to protect you against claims of infringement and unfair competition related to the Licensed Marks, provided that you use the Licensed Marks in accordance with the terms of your Franchise Agreement, as designated by us in the Manuals, and otherwise, as we instruct you. We maintain the exclusive discretion to take any and all actions, or to refrain from any action, that we believe to be appropriate in response to any trademark infringement, challenge or claim.
Source: Item 13 — TRADEMARKS (FDD pages 40–42)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, Beard Papas retains the right to modify the trademarks that franchisees are authorized to use. The FDD specifies that Beard Papas may supplement and modify the marks used in connection with the operation of the franchise. This means that while franchisees are granted a license to use the "Beard Papa's" trademark and other designated marks, this usage is subject to change at the discretion of Beard Papas. Franchisees must only use the licensed marks as authorized in writing by Beard Papas and under the terms of the Franchise Agreement.
This right to modify or replace trademarks extends to situations where a third party establishes superior rights to the licensed marks. In such cases, Beard Papas will modify or replace the licensed marks, and franchisees are obligated to adopt these changes. Beard Papas's sole liability in this event is to reimburse franchisees for the direct out-of-pocket costs of complying with the obligation to change the marks, including alterations in signage and replacement of marketing materials, provided that these costs are documented to Beard Papas's satisfaction.
This aspect of the franchise agreement is important for prospective franchisees to consider. While Beard Papas will cover the direct costs of changing the marks, the process of rebranding can still be disruptive to the business. Franchisees should inquire about the circumstances under which such changes might occur and the typical costs involved to be fully prepared for such a possibility.
The FDD also states that Beard Papas will protect the franchisee's right to use the Licensed Marks and will protect against claims of infringement and unfair competition related to the Licensed Marks, provided that the Licensed Marks are used in accordance with the terms of the Franchise Agreement, as designated by Beard Papas in the Manuals, and otherwise, as instructed. Franchisees are also required to provide written notice of any claims regarding the Licensed Marks. Beard Papas maintains the exclusive discretion to take any and all actions, or to refrain from any action, that they believe to be appropriate in response to any trademark infringement, challenge or claim.