What rights must a Beard Papas franchisee's Shop Location have in relation to Beard Papas' rights?

According to Beard Papas's 2025 Franchise Disclosure Document, a franchisee's rights in their Shop Location must be subordinate to Beard Papas's rights. This is formalized through a Lease Agreement Rider and a Collateral Assignment of Lease, which are attached as exhibits to the Franchise Agreement.

This subordination means that Beard Papas has a superior claim or interest in the Shop Location compared to the franchisee. In practical terms, this could affect the franchisee's ability to make independent decisions about the property or its use. It also potentially gives Beard Papas more control over the location if the franchisee defaults on their obligations.

Site selection is a mutual process, as the franchisee is responsible for selecting a site, but Beard Papas must approve it. Beard Papas provides site selection guidelines and considers factors such as demographics, traffic patterns, parking, building structures, visibility, sign locations, and proximity to other Beard Papas shops. The landlord for the Shop Location must also approve of Beard Papa's Lease Agreement Rider. This ensures that Beard Papas maintains a consistent brand image and operational standards across all franchise locations.