Must a termination agreement between Beard Papas and the franchisee be in writing to be valid?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Sections in Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Varies depending on the number of Shops to be developed and the Development Area. The agreement commences on the effective date and the term automatically expires at the earlier of the opening of the final Shop required for development, or the last day of the calendar month in which the final Shop was required to be open under the Multi-Unit Development Agreement. |
| b. | Renewal or extension of the | Not | There is no renewal of the Multi-Unit Development |
| term | applicable | Agreement. | |
| c. | Requirements for franchisee | Not | There is no renewal of the Multi-Unit Development |
| to renew or extend | applicable | Agreement. | |
| d. | Termination by franchisee | Not applicable | There is no option for your termination of the Multi-Unit Development Agreement. Subject to state law. |
| e. | Termination by franchisor | Not | We can terminate without cause only if you and we |
| without cause | applicable | mutually agree, in writing, to terminate. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, a written agreement is required for termination without cause in the context of a Multi-Unit Development Agreement. Specifically, Beard Papas can only terminate the Multi-Unit Development Agreement without cause if both Beard Papas and the franchisee mutually agree to terminate in writing. This stipulation ensures that there is a clear, documented consensus before such a termination occurs. This requirement does not apply to termination with cause.
This condition offers a layer of protection for the franchisee, ensuring that Beard Papas cannot unilaterally terminate the development agreement without a documented mutual decision. It also provides clarity and legal certainty to the termination process, reducing the potential for disputes.
For prospective Beard Papas franchisees considering a Multi-Unit Development Agreement, this clause is an important point to note. It ensures that the agreement cannot be terminated without cause unless there is a written mutual agreement, providing some security in their investment and development plans. Franchisees should ensure they fully understand the conditions under which Beard Papas can terminate with cause, as those circumstances do not require a mutual written agreement.