What is the role of the Managing Owner in the day-to-day operations of a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
logos and designs are subject to modification, replacement and discontinuance by Franchisor at any time in Franchisor's Reasonable Business Judgment.
"Management Service Fees" shall have the meaning defined and set forth in Articles 7.J. and 14.D. of this Agreement.
- "Managers" refers to and means the Managing Owner plus all assistant managers of the Franchised Business and all other employees, independent contractors, consultants, directors, officers and board members who may possess access to the Confidential Information.
- "Managing Owner" refers to and means, if Franchisee is a partnership or Corporate Entity, the Managing Owner shall be the Owner responsible for the day-to-day oversight, management and operation of the Franchised Business. The Managing Owner must possess, maintain and own not less than 25% of the equity and ownership interests in Franchisee. At all times, the Managing Owner must manage the operations of the Franchised Business.
- "Operating Manager" refers to and means the Manager designated by Franchisee or Franchisee's Managing Owner, that is charged with the obligation and responsibility to supervise and manage (onsite at Franchisee's Shop Facility) the day-to-day operations of the Franchised Business. At all times, the Operating Manager must: (a) meet all of Franchisor's minimum training and brand quality control standards and criteria for managers as may be set forth in the Operations Manual; (b) successfully complete Franchisor's initial training program; (c) sign the Confidentiality Agreement; and (d) agree, in writing, to assume responsibility for the on-site management and supervision of the Franchised Business.
- "Operations Manual" refers to and means, individually and collectively, the manual(s) designated by Franchisor and relating to the development and/or operations of Beard Papa's Shops including, but not limited to, the policies, procedures and requirements for the development and operation of Beard Papa's Shops.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the Managing Owner has a significant role in the operation of the franchise. The Managing Owner is responsible for the day-to-day oversight, management, and operation of the Franchised Business. The Managing Owner must possess, maintain, and own not less than 25% of the equity and ownership interests in Franchisee.
The FDD states that the Beard Papas shop must be under the active, continuing, substantial personal involvement and hands-on supervision of the Franchisee's Managing Owner. However, the Managing Owner can delegate management functions to an authorized Operating Manager if they have satisfactorily completed the Franchisor's Training Program and meet the criteria for qualification as an Operating Manager.
If neither the Managing Owner nor an Operating Manager who has completed the required training manages the Franchised Business, Beard Papas is authorized to appoint a manager to maintain operations on behalf of the franchisee. However, the franchisee remains responsible for their obligations, and Beard Papas is not liable for any debts, losses, costs, or expenses incurred during this period. Beard Papas also has the right to charge fees and expenses for these management services.