Does Beard Papas have reserved rights to use the Licensed Marks?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates reserve to ourselves the exclusive right on any and all terms and conditions that we deem advisable and, without any compensation or consideration to you (Franchise Agreement, Article 2.D. and Multi-Unit Development Agreement, Section 2.3), to engage in the following activities (our "Reserved Rights"): (a) operate and grant to others the right to develop and operate Shops and Franchised Businesses using the System and Licensed Marks at locations outside your Designated Territory and, if applicable, Development Area, as we deem appropriate and irrespective of the proximity to your Designated Territory and, if applicable, Development Area; (b) acquire, develop, merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as, or similar to, the Franchised Business, and after such acquisition, merger or affiliation to own and operate and to franchise, or license others to own and operate and to continue to own and operate such businesses of any kind, even if such businesses offer and sell products and services that are the same as or similar to a the Franchised Business but, not using the Licensed Marks, within your Designated Territory and, if applicable, within your Development Area; (c) be acquired by or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as or similar to the Franchised Business, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate businesses that offer and sell products and services that are the same as or similar to the Franchised Business but, not using the Licensed Marks, within your Designated Territory and, if applicable, your Development Area; (d) use the Licensed
Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business in alternative channels of distribution including wholesale, retail, and/or internet based, supermarkets, grocery stores, wholesale stores, internet/web based sales, and other outlets, within or outside your Designated Territory and, if applicable, your Development Area; (e) operate, and grant to others the right to own and operate, a Shops within or at captive market locations including, but not limited to, indoor malls, airports, transportation stations, factories, government facilities, military bases, hospitals, amusement parks, recreational parks or facilities, sports facilities, convention centers, travel centers, schools, colleges and other academic facilities, seasonal facilities, shopping malls, theaters, workplace cafeterias, hotels, and venues where food service is administered or provided as a concession by a master concessionaire, both within and outside your Designated Territory and, if applicable, your Development Area; and (f) use the Licensed Marks and System and to license others to use the Licensed Marks and System, to engage in all other activities not expressly prohibited by the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, Beard Papas retains specific rights regarding the use of its Licensed Marks and System. These reserved rights allow Beard Papas and its affiliates to operate and grant others the right to develop and operate shops using the System and Licensed Marks outside a franchisee's Designated Territory or Development Area. This means that even if a franchisee has a designated territory, Beard Papas can still establish or allow others to establish Beard Papas shops nearby.
Beard Papas also reserves the right to use the Licensed Marks and System to distribute approved services and products, or similar products, through alternative channels of distribution, including wholesale, retail, internet-based sales, supermarkets, and other outlets, both within and outside a franchisee's Designated Territory or Development Area. This indicates that Beard Papas can sell its products through various channels that may compete with a franchisee's shop. Additionally, Beard Papas can operate or grant others the right to operate shops within captive market locations such as malls, airports, and universities, regardless of their proximity to a franchisee's territory.
Furthermore, Beard Papas retains the right to use the Licensed Marks and System and to license others to use them for activities not expressly prohibited by the Franchise Agreement. These reserved rights provide Beard Papas with considerable flexibility in how it expands and manages its brand, but they also mean that franchisees may face competition from other Beard Papas outlets or alternative distribution channels, even within their designated territories. Prospective franchisees should carefully consider these reserved rights and how they might impact their business before investing in a Beard Papas franchise.