What section of the Beard Papas Multi-Unit Development Agreement discusses the length of the franchise term?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
u should read these provisions in the agreements attached to this Disclosure Document.**
| Provision | Sections in Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Varies depending on the number of Shops to be developed and the Development Area. The agreement commences on the effective date and the term automatically expires at the earlier of the opening of the final Shop required for development, or the last day of the calendar month in which the final Shop was required to be open under the Multi-Unit Development Agreement. |
| b. | Renewal or extension of the | Not | There is no renewal of the Multi-Unit Development |
| term | applicable | Agreement. | |
| c. | Requirements for franchisee | Not | There is no renewal of the Multi-Unit Development |
| to renew or extend | applicable | Agreement. | |
| d. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the length of the franchise term for the Multi-Unit Development Agreement is detailed in Section 3. The term's duration varies based on the number of Beard Papas shops to be developed and the specifics of the development area.
The agreement officially starts on the effective date. However, it automatically concludes when the earlier of two conditions is met: either when the final shop required under the development agreement opens, or on the last day of the calendar month in which the final shop was supposed to be opened according to the Multi-Unit Development Agreement.
Unlike a single-unit franchise agreement, the Multi-Unit Development Agreement with Beard Papas does not offer an option for renewal or extension of the term. This means that once the development obligations are fulfilled or the agreed-upon timeframe concludes, the agreement ends without an opportunity to continue the development relationship under the same terms.