What is the Site Selection Area in the Beard Papas franchise agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Pursuant to and subject to the terms of the Franchise Agreement dated by and between Muginoho International, Inc., as Franchisor, and, as Franchisee (the "Franchise Agreement"), Franchisee has identified a potential area in which Franchisee may seek to identify a potential shop location for Franchisee's Beard Papa's agrees that during the limited period of time that commences on the Site Selection Acknowledgment Date and automatically expires 60 shall not grant to any third following geographic area constituting the Site Selection Area, as such term is defined in the Franchise Agreement: | party the license or right to establish a Beard Papa's | Shop. Based on Franchisee's request, Franchisor calendar days after the Site Selection Acknowledgment Date, that Franchisor Shop Location within the |
|---|---|---|
| Site Selection Area: [Must be completed by Franchisor] | ||
| The terms contained in this Site Selection Acknowledgment shall have the meaning set forth in the | and Article 2 | of the Franchise Agreement. In |
| Franchise Agreement including, but not limited to Article 1 | ||
| the event of any inconsistency or conflict between this Site Selection Acknowledgment and the terms of | ||
| the Franchise Agreement, the terms of the Franchise Agreement shall take precedence and govern. If | ||
| Franchisor does not complete the Site Selection Acknowledgment Date and sign this Site Selection | ||
| Acknowledgment then this Site Select Addendum shall not be effective and there shall be no Site Selection | ||
| Area. As set forth in the Franchise Agreement, among other things, A SITE SELECTION AREA IS NOT | ||
| A | ||
| DESIGNATED TERRITORY, DOES NOT CONSTITUTE THE APPROVAL AS TO ANY | ||
| RESTAURANT LOCATION AND DOES NOT AFFORD FRANCHISEE ANY TERRITORIAL | ||
| RIGHTS. |
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the Site Selection Area is a geographic area defined by the franchisor where the franchisee may seek a potential shop location. The specific details of the Site Selection Area must be completed by Beard Papas.
The Site Selection Acknowledgment form outlines the terms related to this area, referencing Article 1 and Article 2 of the Franchise Agreement. The agreement specifies that the terms in the Franchise Agreement take precedence over the Site Selection Acknowledgment in case of any inconsistencies. If Beard Papas does not complete and sign the Site Selection Acknowledgment, the Site Selection Area is not effective.
It is important to note that the Site Selection Area is not a designated territory and does not grant the franchisee any territorial rights or guarantee approval of a restaurant location. The franchisor has a limited time of 60 calendar days after the Site Selection Acknowledgment Date to not grant any third party the license or right to establish a Beard Papa's Shop within the Site Selection Area.