What is the significance of the copy machine lease agreement for Beard Papas?

Based on the 2025 Franchise Disclosure Document, there is no mention of a copy machine lease agreement for Beard Papas. The document does refer to lease agreements in general. Specifically, it discusses a 'Lease Agreement Rider' which supplements and amends the lease between the landlord and the tenant (franchisee). This rider ensures that the franchisor, Beard Papas, has certain rights, such as the ability to approve any transfer or assignment of the lease.

Additionally, the FDD states that Beard Papas has the option to assume or renew the lease if the Franchise Agreement is terminated, expires, or if the tenant defaults. This provides Beard Papas with a mechanism to maintain control over the location and potentially sublease it to another franchisee. The landlord's consent is not required for Beard Papas to assume the lease, and no assignment fees or rent increases can be imposed as a result of this assumption.

The FDD also mentions that for the years ended December 31, 2023 and 2022, Beard Papas incurred rent expenses under noncancelable lease agreements of approximately $168,000 and $70,000, respectively. This indicates the franchisor's own financial obligations related to property leases.

Since the FDD does not provide information regarding copy machine lease agreements, a prospective franchisee should ask the franchisor directly about any requirements or recommendations regarding the leasing of copy machines or other office equipment. This would include understanding whether franchisees are required to use specific vendors or if there are any approved models or brands for such equipment.