When signing a Multi-Unit Development Agreement for Beard Papas, what other agreement must also be signed?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Multi-Unit Development Agreement
Note 1: Development Area Fee and Franchise Fees — When you sign a Multi-Unit Development Agreement you must also sign a Franchise Agreement for the first Shop that you will be required to develop under your Multi-Unit Development Agreement. At the time of signing your Multi-Unit Development Agreement, in addition to paying us the Initial Franchise Fee for your first Shop, you will pay to us a Development Area Fee. The Development Area Fee varies depending on the number of additional Shops, over and above the first Shop authorized by the Franchise Agreement, that you will be authorized to develop within the Development Area.
The minimum number of Shops that you may be authorized to develop under a Multi-Unit Development Agreement is three and the maximum number is ten. The Development Area Fee for each additional Shop will vary depending on the total number of Shops that you are authorized to develop under your Multi-Unit Development Agreement, as follows:
- (a) Three to Four Shops If you sign a Multi-Unit Development Agreement that authorizes you to develop three or four Shops, the Initial Franchise Fee is discounted to $33,200 and the Development Area Fee is $33,200 for each additional Shop, over and above your first Shop, authorized for development under the Multi-Unit Development Agreement.
- (b) Five to Ten Shops If you sign a Multi-Unit Development Agreement that authorizes you to develop five to ten Shops, the Initial Franchise Fee is discounted to $29,900 and the Development Area Fee is $29,900 for each additional Shop, over and above your first Shop, authorized for development under the Multi-Unit Development Agreement.
You will not be required to pay to us an Initial Franchise Fee at the time of signing the Franchise Agreement for each additional Shop, over and above the Initial Franchise Fee that you will pay at the time of signing the Franchise Agreement for the first Shop in your Development Area and the Development Area Fee that you will pay to us at the time of signing the
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–26)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, when signing a Multi-Unit Development Agreement, you must also sign a Franchise Agreement for the first shop that you will be required to develop under the Multi-Unit Development Agreement. This means that the initial agreement covers the rights and responsibilities for developing multiple units, but it is paired with a standard franchise agreement that governs the operation of your first Beard Papas location.
At the time of signing the Multi-Unit Development Agreement, you will need to pay the Initial Franchise Fee for your first shop, as well as a Development Area Fee. The Development Area Fee will vary depending on the number of additional shops you are authorized to develop beyond the first shop. The minimum number of shops you can be authorized to develop under a Multi-Unit Development Agreement is three, and the maximum is ten.
If the Multi-Unit Development Agreement authorizes you to develop three to four shops, the Initial Franchise Fee is discounted to $33,200, and the Development Area Fee is $33,200 for each additional shop. If the agreement authorizes you to develop five to ten shops, the Initial Franchise Fee is discounted to $29,900, and the Development Area Fee is $29,900 for each additional shop. You will not be required to pay an Initial Franchise Fee when signing the Franchise Agreement for each additional shop beyond the first one.