Under what circumstances can the management functions of a Beard Papas franchise be delegated to an Operating Manager?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
ty, shall be determinative as between Franchisor and Franchisee and the operations of the Franchised Business.
7.J. MANAGEMENT OF RESTAURANT
- (1) Franchisee agrees that critical to the success of the Franchised Business is the active, continuing and substantial personal involvement and hands-on supervision of Franchisee's Managing Owner. At all times, Franchisee's Beard Papa's Shop must be under the active, continuing and substantial personal involvement and hands-on supervision of Franchisee's Managing Owner. The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless Franchisee delegates management functions to an authorized Operating Manager who, among other things, satisfactorily completed Franchisor's Training Program and has otherwise meet the criteria and conditions for qualification as an Operating Manager. If the Operating Manager is a family member of Franchisee and/or an Owner then the Operating Manager must also sign and agree to be bound by the terms of the Owner and Spouse Agreement and Guaranty.
- (2) Franchisee must, at all times, faithfully, honestly and diligently perform its obligations hereunder, and continuously exert its best efforts to promote and enhance the business of the Franchised Business and the goodwill of the Licensed Marks.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the management functions of a Beard Papa's Shop can be delegated to an authorized Operating Manager under specific conditions. The franchisee's Managing Owner must typically be actively involved in the operation of the franchised business. However, this responsibility can be delegated if the franchisee delegates management functions to an authorized Operating Manager.
To qualify as an Operating Manager, the individual must satisfactorily complete Beard Papas's Training Program and meet other criteria and conditions for qualification. This ensures that the Operating Manager is adequately trained and prepared to uphold the brand's standards and operational procedures. If the Operating Manager is a family member of the franchisee or an owner, they must also sign and agree to be bound by the terms of the Owner and Spouse Agreement and Guaranty.
Furthermore, the Operating Manager is defined as the manager designated by the franchisee or the Managing Owner, responsible for supervising and managing the day-to-day operations of the franchised business on-site at the Franchisee's Shop Facility. The Operating Manager must also meet all of Beard Papas's minimum training and brand quality control standards and criteria for managers as set forth in the Operations Manual, successfully complete the initial training program, sign the Confidentiality Agreement, and agree in writing to assume responsibility for the on-site management and supervision of the Franchised Business.