Is there a specific section in the Beard Papas Multi-Unit Development Agreement that outlines the length of the franchise term?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
u should read these provisions in the agreements attached to this Disclosure 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, the length of the franchise term within the Multi-Unit Development Agreement is detailed in Section 3. The term's duration varies based on the number of Shops to be developed and the Development Area's specifics. The agreement starts on its effective date and concludes automatically when the earlier of two conditions is met: either the opening of the final Shop required under the development agreement or the last day of the calendar month in which the final Shop was mandated to open.
This means that a prospective Beard Papas multi-unit developer's agreement term is directly tied to their development schedule. The more shops they are obligated to open and the faster they open them, the shorter the development agreement term will be. Conversely, a slower development pace or fewer required shops will result in a longer agreement term, up to the maximum time allowed in the development schedule.
It is important to note that the Multi-Unit Development Agreement does not offer any renewal or extension options. Once the agreement expires, the developer loses all rights associated with it. This contrasts with standard single-unit franchise agreements, which often include options for renewal if certain conditions are met. This lack of renewal options emphasizes the importance of adhering to the development schedule and understanding the implications of the agreement's term length for a Beard Papas multi-unit developer.