Does Beard Papas have any sublease agreements related to its office space?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
nsent of Franchisor. Without limitation to the foregoing, among other things, Tenant agrees that if Tenant wishes to transfer any interests in the Lease or the Leased Premises that Tenant must request the written
consent of Franchisor. If Tenant requests Landlord's consent to Tenant's amendment, transfer and/or assignment of Tenant's interests in the Lease and/or the Leased Premises and if Landlord is inclined to approve of such amendment, transfer and/or assignment that Landlord shall condition Landlord's approval upon Tenant also obtaining written consent from Franchisor.
- Upon the occurrence of (a) the termination, for any reason, of the Franchise Agreement; (b) the expiration, without renewal, of the Franchise Agreement; (c) Franchisor's exercise of Franchisor's Right of First Refusal granted to Franchisor in the Franchise Agreement; (d) Tenant's default under the terms of the Lease; and/or (e) Tenant's failure to exercise an option period under the terms of the Lease, Tenant and Landlord acknowledge and agree, that:
Franchisor will have the option, but not the obligation, to assume or renew the Lease and the occupancy of the Leased Premises, including the right to sublease to another Franchisee of the Beard Papa's Franchise System, for all or any part of the remaining term of the Lease and, in connection with said assumption, Franchisor will not be obligated to pay to Landlord more than two months past due rent, real estate taxes and common area maintenance charges. In the event Franchisor assumes Tenant's leasehold interest in the Lease pursuant to the terms of this Agreement and subsequently assigns the Lease and its leasehold interest to a Beard Papa's franchisee approved by Landlord, Franchisor shall not be responsible for any obligations, debts, liabilities or payments arising and/or accruing under the Lease after the effective date of such assignment. Landlord agrees that any assignment of the Lease and Tenant's leasehold interests in the Lease by Tenant to Franchisor and/or assumption by Franchisor of the Lease and such leasehold interests shall not require Landlord consent and shall not require any payment of any assignment fee or similar charge or result in any increase in rent or other fees as a result of such assignment and/or assumption.
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- Landlord must provide Franchisor, at the same time that Landlord provides Tenant, with a copy of all lease amendments and assignments, and a copy of all letters and notices that Landlord sends to Tenant relating to the Lease or the Premises. Subject to the rights set forth in Section "3" of this Rider, Landlord agrees to notify Franchisor by nationally recognized overnight courier at the Notice Address of any default by Tenant under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, under certain conditions, Beard Papas has the option to sublease franchise locations to other franchisees. Specifically, if a franchisee's agreement is terminated, expires without renewal, or if Beard Papas exercises its right of first refusal, Beard Papas has the option to assume or renew the lease. This includes the right to sublease the location to another Beard Papas franchisee.
Beard Papas will not be obligated to pay the landlord more than two months of past due rent, real estate taxes, and common area maintenance charges if they choose to assume or renew the lease. If Beard Papas assumes the lease and subsequently assigns it to another approved franchisee, Beard Papas is not responsible for any obligations arising after the assignment date. The landlord's consent is not required for the assignment or assumption of the lease by Beard Papas, nor can the landlord impose any assignment fees or increase the rent or other fees as a result.
Furthermore, franchisees are restricted from transferring or subleasing their interests in the lease or the leased premises without prior written consent from Beard Papas. If a franchisee seeks to amend, transfer, or assign their interests, they must obtain written consent from Beard Papas, even if the landlord is inclined to approve the request. This provision ensures that Beard Papas maintains control over the locations of its franchises and the terms of their operation.
This arrangement benefits Beard Papas by providing flexibility in managing franchise locations and ensuring continuity of operations. It also protects the brand by allowing Beard Papas to control who operates a franchise under its name and to maintain consistent standards across all locations. For a prospective franchisee, this means that their ability to sublease or transfer their location is subject to Beard Papas's approval, and they may also find themselves operating in a location that was previously managed by another franchisee.