Under what agreement does Beard Papas grant a Development Area?

According to Beard Papas's 2025 Franchise Disclosure Document, a Development Area is granted under a Multi-Unit Development Agreement. Specifically, if Beard Papas enters into a Multi-Unit Development Agreement with a franchisee, Beard Papas will grant the franchisee a Development Area. The size of the Development Area can vary significantly among franchisees. The specifics are negotiated when the Multi-Unit Development Agreement is signed, taking into account the agreed-upon Development Schedule, Beard Papas's system development plans, and the market and demographics of the Development Area.

This agreement allows a franchisee to develop multiple Beard Papas shops within a defined area, following a set schedule. This is in contrast to a standard Franchise Agreement, which grants the right to operate only one shop at a specific location. The Multi-Unit Development Agreement is subject to the franchisee's compliance with the development schedule and the terms of all agreements with Beard Papas and its affiliates, including Franchise Agreements.

It's important to note that the designation of a Development Area does not guarantee that there are enough suitable sites for Beard Papas shops to meet the Minimum Performance Schedule. Failure to meet the Development Schedule under the Multi-Unit Development Agreement may result in its termination. Additionally, franchisees operating under a Multi-Unit Development Agreement do not have the right to relocate their Development Area.