Who is responsible for the expense of upgrading the Beard Papas shop facility during a transfer?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) Unless Franchisee has met the requirements of Article 3.E. within the five year period immediately preceding the Transfer, the transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Beard Papa's Shop Facility to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the financial responsibility for upgrading the shop facility during a transfer depends on whether the franchisee has met specific requirements in the five years leading up to the transfer. If the franchisee has not met the requirements outlined in Article 3.E within that five-year period, the financial burden of upgrading the Beard Papas shop facility falls on the transferee.
Specifically, the transferee is responsible for covering the costs associated with improving, modifying, refurbishing, renovating, remodeling, or otherwise upgrading the Beard Papas shop to meet the franchisor's current standards and specifications. These upgrades must be completed within a timeframe that Beard Papas reasonably specifies.
This requirement ensures that all Beard Papas locations maintain a consistent brand image and meet current operational standards, which can impact the customer experience and overall brand reputation. For a prospective franchisee, this means that if they plan to transfer the franchise in the future, they should ensure they meet all requirements to avoid placing the upgrade costs on the transferee. Conversely, a potential transferee should be aware of this potential expense and factor it into their financial planning when considering acquiring a Beard Papas franchise.