How does Beard Papas review and approve the proposed site for my Shop?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Although you are responsible for selecting a site for your Shop Location you must obtain our approval of your Shop Location. We do not typically own or lease the real property that will serve as your Shop Location and you are responsible for all costs and expenses in locating and evaluating proposed sites and the demographic data associated with your proposed sites. Before you enter into a lease or other agreement for your Shop Location you must obtain our approval. We will provide you with site selection guidelines. If your Franchise Agreement specifies and designates a Designated Territory, your Shop Location must be located within your Designated Territory at a site that we approve. If you sign a Multi-Unit Development Agreement then each Shop Location must be located within the Development Area designated in the Multi-Unit Development Agreement and, as applicable, at sites that we approve within the Development Area. Your rights in your Shop Location must be subordinate to our rights as set forth in the Lease Agreement Rider attached as Exhibit 4 to the Franchise Agreement and the Collateral Assignment of Lease attached as Exhibit 5 to the Franchise Agreement.
Although there is no specified time limit for us to review the proposed site for your Shop Location, we will do so within a reasonable time period, not exceeding 30 days of our receipt of your written request for our review of a proposed site and your submission to us of the information and documentation that we may request. In determining whether to approve or disapprove a proposed site for your Shop Location, factors
that we take into consideration include: (a) demographic factors, traffic patterns, parking, building structures, visibility and available sign locations; (b) characteristics of the proposed site; (c) the location of your proposed site relative to your overall Designated Territory and proximity to other Shops, if your Designated Territory was previously designated; (d) the location of your proposed site relative to your overall Development Area and proximity to other Shops, if you signed a Multi-Unit Development Agreement and your Development Area was previously designated; and (e) whether or not the landlord for the Shop Location approves of our Lease Agreement Rider in substantially the same form as contained in Exhibit 4 of the Franchise Agreement.
Within 120 days of signing your Franchise Agreement you must secure a Shop Location and lease that we approve (Franchise Agreement, Article 3.A.). If you do not meet this requirement for any reason, including our disapproval of a proposed shop location and/or your failure to find a suitable shop location that we approve during the 120 day period, we may terminate your Franchise Agreement without refunding any fees to you if you do not cure this default within 30 days of notice from us. It is your obligation to consult with government agencies, architects and legal professionals to evaluate and determine that your Shop Location permits the establishment and operation of the Franchised Business and that you possess the necessary licenses and authority to operate a shop that offers and provides the Approved Services and Products. (Franchise Agreement, Articles 2, 3, 7 and 16). If we cannot agree on a site that meets the specifications above within 120 days of executing the Franchise Agreement, we may terminate your franchise agreement and your franchise fee will not be returned to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, while franchisees are responsible for selecting a site for their Shop location, Beard Papas must approve the location. Franchisees bear all costs associated with locating and evaluating potential sites, including demographic data. Before signing any lease or agreement, franchisees must obtain Beard Papas's approval and adhere to provided site selection guidelines. If a Designated Territory is specified in the Franchise Agreement, the Shop must be located within that territory at an approved site. Similarly, under a Multi-Unit Development Agreement, each Shop must be within the designated Development Area and at an approved site. The franchisee's rights to the Shop location must be subordinate to Beard Papas's rights, as detailed in the Lease Agreement Rider and Collateral Assignment of Lease.
Beard Papas aims to review proposed sites within a reasonable timeframe, not exceeding 30 days from receiving a written request and all required information. Factors considered during the review include demographic factors, traffic patterns, parking, building structures, visibility, available sign locations, and characteristics of the proposed site. The location's proximity to other Beard Papas shops within the Designated Territory or Development Area is also evaluated, as is whether the landlord approves Beard Papas's Lease Agreement Rider.
Franchisees must secure an approved Shop location and lease within 120 days of signing the Franchise Agreement. Failure to meet this requirement, including due to Beard Papas's disapproval or the franchisee's inability to find a suitable location, may result in termination of the Franchise Agreement without a refund of fees, unless the default is cured within 30 days of notice. Franchisees are responsible for consulting with government agencies, architects, and legal professionals to ensure the Shop location permits the Franchised Business's establishment and operation and that all necessary licenses and authority are obtained. If an agreeable site cannot be found within 120 days, Beard Papas may terminate the agreement, and the franchise fee will not be returned.