Which sections of the Beard Papas Franchise Agreement outline the individual guarantee of franchisee obligations?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Articles in Agreement | Disclosure Document Item | |
|---|---|---|
| a. Site selection and acquisition/lease | FA: 2.A., 3.A. and 3.B. DA: 2, 5.5 and 5.6 | 7 and 11 |
| b. Pre-opening purchases and leases | FA: 3 and 8 DA: Not applicable | 7 and 8 |
| c. Site development and other pre- | FA: 3, 4, 7.F., 7.G., 7.I., 7.J., 8 and 9 | 6, 7 and 11 |
| opening requirements | DA: 2, 5.5 and 5.6 | |
| d. Initial and ongoing training | FA: 4, 7.J., 14.C. and 14.D. DA: Not applicable | 11 |
| e. Opening | FA: 2, 3, 4 and 9.B. DA: 2, 3, 4.1, 4.4 and 4.5 | 11 |
| f. Fees | FA: 3, 4.A., 5, 9, 10, 12, 13, 14, 15, 16 and 18.N. DA: 4, 5.2 and 7.13 | 5, 6 and 7 |
| g. Compliance with standards and | FA: 3, 4, 5, 7, 8, 9, 11, 12 and 13 | 8 and 11 |
| policies/manual | DA: 2 and 5 | |
| h. Trademarks and proprietary | FA: 6, 7 and 11 | 13 and 14 |
| information | DA: 2, 5 and 7.3 | |
| i. Restrictions on products and | FA: 3, 4.C. and 7 | 8, 11 and 16 |
| services offered | DA: 2 and 5 | |
| j. Warranty and customer service | FA: 7 | 16 |
| requirements | DA: Not applicable | |
| k. Territorial development and sales | FA: 2 and 3 | 12 |
| quotas | DA: 4 | |
| l. Ongoing product and service | FA: 3, 4.C., 5 and 7 | 8 |
| purchases | DA: Not applicable | |
| m. Maintenance, appearance, and | FA: 3 and 7 | 7 and 17 |
| remodeling requirements | DA: 5 | |
| n. Insurance | FA: 8 DA: Not applicable | 7 and 8 |
| o. Advertising | FA: 3.F., 4.B., 7.I., 9 and 11 DA: Not applicable | 6, 8 and 11 |
| p. Indemnification | FA: 10 and 11.E. DA: Not applicable | 6 and 13 |
| q. Owner’s participation, | FA: 4, 6 and 7 | 11 and 15 |
| management, and staffing | DA: 2.5 and 6.2 | |
| r. Records and reports | FA: 5, 9, 12 and 13 DA: Not applicable | 6 |
| s. Inspections and audits | FA: 5, 7.K. and 13 DA: Not applicable | 6 and 11 |
| Articles in Agreement | Disclosure Document Item | |
| t. Transfer | FA: 14 DA: 6 | 17 |
| u. Renewal | FA: 15 DA: 3 | 17 |
| v. Post-termination obligations | FA: 6, 10, 11, 17 and 18 DA: Not applicable | 17 |
| w. Non-competition covenants | FA: 6, 17 and 18 DA: Not applicable | 17 |
| x. Dispute resolution | FA: 18.F. and 18.G. DA: 7 | 17 |
| y. Individual guarantee of franchisee | FA: 2.C., 6, 7.J., 14.C., 14D., 14.E. and 17.C. | 9 |
| obligations | DA: 2.3 and 6.2 |
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, the individual guarantee of franchisee obligations is detailed in specific articles and sections of the Franchise Agreement. These include Articles 2.C., 6, 7.J., 14.C., 14D., 14.E., and 17.C. Information regarding the individual guarantee of franchisee obligations can also be found in Disclosure Document Items 2.3 and 6.2.
For a prospective Beard Papas franchisee, this means that these sections of the Franchise Agreement are crucial for understanding the extent to which they, as individuals, will be held responsible for the financial and operational obligations of the franchise. It is common practice in franchising for franchisors to seek a personal guarantee, especially from franchisees operating under a corporate entity, to ensure accountability.
Therefore, a potential Beard Papas franchisee should carefully review these sections with a legal advisor to fully grasp the implications of providing an individual guarantee. Understanding these obligations is essential before signing the Franchise Agreement to avoid potential personal liability for the franchise's debts or failures.