What are the specific obligations of a Beard Papas franchisee regarding site selection, as detailed in Item 9, and how does the franchisor assist with this process, as described in Item 11?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be solely responsible for selecting the site(s) for the Franchisee's Shop Locations. In accordance with the terms and conditions of each respective Franchise Agreement, Franchisee must obtain Franchisor's prior written approval as to each potential Shop Location selected by Franchisee. Franchisee will retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating Shop sites to locate, acquire, purchase or lease the site for the Franchisee's Development Shops. Accordingly, no provision of this Agreement will be construed or interpreted to impose any obligation upon Franchisor to locate a site for the Development Shops, to assist Franchisee in the selection of a suitable site for the Development Shops, or to provide any assistance to the Franchisee in the purchase or lease of the site for the Development Shops.
5.6 SITE SELECTION CRITERIA
Franchisee will not lease, purchase or otherwise acquire a Shop Locations for the Development Shops until such information as Franchisor may require regarding the proposed site has been provided to Franchisor by Franchisee and has been approved by Franchisor. Information requested by Franchisor may include, without limitation, information regarding the proposed Shop Location as to accessibility, visibility, potential traffic flows, lease terms and other demographic information. Franchisee shall not enter into any lease or purchase agreement with respect to any proposed Shop Location until Franchisor has approved the site.
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, the franchisee is primarily responsible for site selection for their shop locations. The franchisee must secure the franchisor's written approval for any potential site. To aid in this process, the franchisee is expected to hire an experienced commercial real estate broker or salesperson to help locate, acquire, purchase, or lease the site. Beard Papas is not obligated to assist in site selection.
Before acquiring a site, the franchisee must provide Beard Papas with all required information about the proposed location, including details on accessibility, visibility, potential traffic flow, lease terms, and demographic data. The franchisee cannot enter into any lease or purchase agreement until Beard Papas approves the site.
Beard Papas may offer a Site Selection Acknowledgment, which, for a limited time (60 calendar days from the Site Selection Acknowledgment Date), prevents Beard Papas from granting another franchise within a defined Site Selection Area. However, this acknowledgment does not guarantee site approval, designate a protected territory, or grant any territorial rights to the franchisee. The franchisor determines what constitutes the current Franchise Agreement and may modify it, with reasonable modifications not altering the franchisee's obligations.
Once a site is approved, the franchisee is responsible for preparing and submitting specific plans and specifications for the shop, using design consultants designated or approved by Beard Papas, at the franchisee's expense. These plans must comply with Beard Papa's generalized plans, specifications, and the Operations Manual. The franchisee must also obtain all necessary permits and licenses, construct improvements, and purchase and install required furniture and equipment according to the approved plans and specifications. The franchisee must provide timely written reports on the construction and remodeling process and establish accounting and inventory control systems as prescribed by Beard Papas.