factual

What right does Beard Papas grant to the franchisee?

Beard_Papas Franchise · 2025 FDD

Answer from 2025 FDD Document

STEMS AND TRAINING**

Except as listed below, we are not required to provide you with any assistance.

Pre-Opening Obligations

    1. Grant of Franchise We will grant you the right to operate a Shop at a single Shop Location within a designated territory. (Franchise Agreement, Article 2);
    1. Franchise Agreement Designated Territory Once you secure a Shop Location that we approve, we will define the Designated Territory for your Shop and include the geographic boundaries and/or a description of your Designated Territory within Schedule 1 of the Franchise Agreement. (Franchise Agreement, Article 2 and Schedule 1);
    1. Multi-Unit Development Agreement Development Area If you have entered into a Multi-Unit Development Agreement, we will designate your Development Area. The Shops to be developed by you must be located within the Development Area. Once you select a Shop Location that we approve within the Development Area, within the Franchise Agreement for each respective Shop we will define the Designated Territory and include the geographic boundaries and/or a description of your Designated Territory for each respective Shop. (Multi-Unit Development Agreement, Section 2). Our approval or disapproval of future Shop locations that may be developed under a Multi-Unit Development Agreement will be based on our then current site selection criteria;
    1. Manuals We will provide you with access to our confidential and proprietary Manuals. You must operate the Franchised Business in accordance with the Manuals and all applicable laws, rules and regulations. At all times, we reserve the right to supplement, modify and update the Manuals. (Franchise Agreement, Article 4.C.). As of the Issuance Date of this Disclosure Document, the operations manual consists of 110 pages and the table of contents to the operations manual is attached as Exhibit C to this

Disclosure Document (Franchise Agreement, Article 4). The major subjects contained in the operations manual consists of establishing, developing, marketing and operating the Franchised Business;

    1. Site Review, Approval and Designated Territory We will review the proposed site that you select for your Shop and will notify you of our approval or disapproval. Once you select a site that we approve for the location of your Shop, we will designate your Designated Territory. However, if you negotiate and we agree to designate and grant to you a Designated Territory prior to your selection of a Shop, then you must locate your Shop within the Designated Territory and at a site that we approve. You must obtain our approval of your Shop Location. Additional information about site selection is discussed in more detail below in this Item 11;
    1. Approved Suppliers and Distributors We will provide you with a list of our approved suppliers and distributors, either as part of the Manuals or otherwise in writing. (Franchise Agreement, Articles 3 and 4);
    1. Signs, Equipment, Furniture, and Fixtures We will provide you with a list of our approved signage, equipment, furniture and fixtures, either as part of the Manuals or otherwise in writing and we will review and approve, in our discretion, your proposed signage, equipment, furniture and fixtures. We do not provide assistance in delivering or installing signs, equipment, furniture, or fixtures. (Franchise Agreement, Articles 3 and 4);
    1. Website and Digital Media We will identify your Shop on our website. You may not use any websites, web-based media or digital media unless expressly approved by us in writing. We strictly control how you may or may not use websites and digital media and you must assign all website media and digital media accounts to us. (Franchise Agreement, Articles 3.F. and 9); and
    1. Initial Training Not less than one week prior to the opening of your Shop you or your Managing Owner and two management level employees or Owners must attend and complete our initial training program. We will provide you, and up to two of your designated managers, with training in accordance with our initial training program. (Franchise Agreement, Article 4).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)

What This Means (2025 FDD)

According to the 2025 Beard Papas FDD, Beard Papas grants the franchisee the right to operate a shop at a single location within a designated territory. The specific geographic boundaries or a description of this designated territory will be outlined in Schedule 1 of the Franchise Agreement. This territory is defined once the franchisee secures a shop location that Beard Papas approves.

For franchisees entering into a Multi-Unit Development Agreement, Beard Papas will designate a Development Area within which all shops to be developed must be located. Upon selecting an approved shop location within the Development Area, the Franchise Agreement for each shop will define the Designated Territory, including geographic boundaries or a description for each respective shop. Beard Papas's approval of future shop locations under a Multi-Unit Development Agreement will be based on their current site selection criteria.

Beard Papas also requires franchisees to operate their franchised business in accordance with the manuals provided, which Beard Papas reserves the right to modify or update. Franchisees must also obtain Beard Papas's approval for their shop location, even though the franchisee is responsible for selecting the site. If a Designated Territory is specified in the Franchise Agreement, the shop must be located within that territory at an approved site. The 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 exhibits to the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.