Under what condition can a Beard Papas franchisee establish additional shops?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not have the right to establish additional Shops unless you sign a Multi-Unit Development Agreement. If we enter into and sign a Multi-Unit Development Agreement with you then you will have the right to develop a mutually agreed upon number of additional Shops within a specified Development Area. The size of your Development Area will vary significantly from other franchisees and your right to develop additional Shops under a Multi-Unit Development Agreement will be subject to your timely compliance with the agreed upon development schedule, your compliance with the terms of your Multi-Unit Development Agreement, and your compliance with all other agreements with us and our affiliates, including all Franchise Agreements. Our approval of future Shop Locations and their respective designated territories will be based on our then current site and territory criteria. Our designation of a particular Development Area is not an assurance or warranty that there are a sufficient number of suitable sites for Shops in the Development Area for you to meet your Minimum Performance Schedule. Failure to meet the Development Schedule under the Multi-Unit Development Agreement may result in termination of your Multi-Unit Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, a franchisee does not automatically have the right to establish additional shops. The key condition under which a franchisee can open more locations is by entering into a Multi-Unit Development Agreement with Beard Papas.
If Beard Papas and a franchisee sign a Multi-Unit Development Agreement, the franchisee gains the right to develop a mutually agreed-upon number of additional Beard Papas shops within a specified Development Area. The size of this Development Area can vary significantly compared to other franchisees.
However, this right is contingent upon the franchisee's timely compliance with an agreed-upon development schedule, adherence to the terms of the Multi-Unit Development Agreement, and compliance with all other agreements with Beard Papas and its affiliates, including all Franchise Agreements. Beard Papas's approval of future shop locations and their designated territories will be based on their then-current site and territory criteria. It's important to note that the designation of a particular Development Area does not guarantee a sufficient number of suitable sites for the franchisee to meet their Minimum Performance Schedule, and failure to meet the development schedule may result in the termination of the Multi-Unit Development Agreement.