Are there any requirements for a Beard Papas franchisee to renew or extend the Multi-Unit Development Agreement?
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. | |
| f. |
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, there are no options to renew or extend the Multi-Unit Development Agreement. The agreement's term depends on the number of shops to be developed and the development area. The agreement starts on the effective date and ends when the final shop required for development opens or on the last day of the calendar month in which the final shop was required to open.
This means that once a Beard Papas franchisee has fulfilled their development obligations by opening all the shops outlined in the agreement or the deadline for opening those shops has passed, the Multi-Unit Development Agreement automatically expires. There is no mechanism in place to prolong the agreement beyond this initial term.
Prospective franchisees should be aware that their rights and obligations under the Multi-Unit Development Agreement cease upon its expiration. If a franchisee wishes to continue developing Beard Papas shops beyond the scope of the original agreement, they would likely need to negotiate a new agreement with the franchisor. This is a crucial consideration for those planning long-term expansion within a specific territory.