When transferring a Beard Papas franchise, what agreement must each owner and spouse of the transferee personally execute?

According to Beard Papas's 2025 Franchise Disclosure Document, when transferring a franchise, each owner of the transferee and their respective spouses must personally execute the Owner and Spouse Agreement and Guaranty. This agreement is in the form attached to the Franchise Agreement as Exhibit 1.

This requirement ensures that the new owners and their spouses are legally bound to the obligations and responsibilities outlined in the franchise agreement. By signing the Owner and Spouse Agreement and Guaranty, they are essentially guaranteeing the transferee's performance under the franchise agreement. This provides Beard Papas with an additional layer of security, as they can pursue the personal assets of the owners and their spouses if the transferee fails to meet its obligations.

In addition to the Owner and Spouse Agreement and Guaranty, the franchisee, each owner, and each spouse must execute a General Release, attached as Exhibit 8, releasing Beard Papas from any claims arising on or before the transfer date. The transferee's employees, directors, officers, independent contractors, and agents who will have access to Confidential Information must also execute the Confidentiality Agreement attached as Exhibit 2. These multiple agreements ensure that all parties understand their obligations and liabilities in relation to the transfer of the Beard Papas franchise.