Are there any exceptions to the requirement that modifications to the Beard Papas Franchise Agreement be in writing?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| r. | Non-competition covenants after the franchise is terminated or expires | 6, 17.E. | No involvement, ownership, or interest whatsoever for 24 months in any competing business in: your Designated Territory; a 25-mile radius of your Designated Territory; a 10-mile radius of the Designated Territory of any other Shop; and you must comply with confidentiality, non disclosure and non-solicitation covenants. |
|---|---|---|---|
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral |
| changes that we may make to the Manuals or our unilateral | |||
| reduction of the scope of a restrictive covenant that we may | |||
| make in our discretion. |
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, modifications to the franchise agreement generally require a written agreement signed by both Beard Papas and the franchisee. However, there are exceptions to this rule. Beard Papas can unilaterally make changes to the manuals without a written agreement. Additionally, Beard Papas can unilaterally reduce the scope of a restrictive covenant at their discretion without a written agreement.
This means that while significant changes to the core agreement require mutual written consent, Beard Papas retains the flexibility to adjust operational guidelines and certain restrictions without needing the franchisee's explicit approval. This is a fairly common practice in franchising, allowing franchisors to adapt to changing market conditions and improve system standards.
For a prospective Beard Papas franchisee, this implies that they should pay close attention to the operations manuals and any communications regarding changes to restrictive covenants, as these can be altered by Beard Papas without direct negotiation. It is important to understand the scope of these potential unilateral changes and how they might impact the operation of the franchise. Franchisees should maintain open communication with Beard Papas to stay informed about any such modifications and understand the reasoning behind them.