Under what condition can a Beard Papas franchisee be excused from participating in the Advertising Cooperative?

According to the 2025 Beard Papas Franchise Disclosure Document, a franchisee, each Owner, and each Spouse shall remain liable for all obligations to Beard Papas set forth in the Franchise Agreement. However, following a Transfer that fully complies with Article 14.C., the franchisee, each Owner, and each Spouse shall not be obligated to pay any Royalty Fees and Advertising Contributions which accrue following the date of the approved Transfer.

This means that if a Beard Papas franchisee sells their franchise and the transfer is approved and fully complies with all requirements outlined in Article 14.C of the franchise agreement, the original franchisee is no longer responsible for royalty fees and advertising contributions that come due after the transfer date. This provides a clear exit strategy for franchisees who may wish to leave the Beard Papas system.

It is important for prospective franchisees to carefully review Article 14.C. to understand all the conditions that must be met for a transfer to be considered fully compliant. Failure to meet these conditions could result in the original franchisee remaining liable for ongoing fees and contributions, even after the business has been sold. This is a standard clause in most franchise agreements to protect the franchisor's interests and ensure a smooth transition of ownership.