Are there any renewal options for Beard Papas' copy machine or office lease agreements?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
The 2025 Beard Papas Franchise Disclosure Document (FDD) does not explicitly address renewal options for copy machine or general office equipment leases. However, the FDD does state that in certain situations, Beard Papas has the option to assume or renew the lease for the shop's premises.
Specifically, if the Franchise Agreement terminates, expires without renewal, or if the franchisee defaults on the lease, Beard Papas has the option, but not the obligation, to assume or renew the lease. This includes the right to sublease the premises to another Beard Papas franchisee. If Beard Papas assumes the lease, they are only obligated to pay up to two months of past due rent, real estate taxes, and common area maintenance charges.
Furthermore, the landlord agrees that Beard Papas' assumption or assignment of the lease does not require their consent, payment of assignment fees, or result in increased rent or other fees. This clause protects Beard Papas and ensures business continuity in case a franchisee exits the system. However, the document does not provide information on the renewal options for copy machine or office equipment leases, so prospective franchisees should seek clarification from Beard Papas regarding these specific types of leases.