conditional

Under what condition does each provision of the amendment become effective for a Beard Papas franchise?

Beard_Papas Franchise · 2025 FDD

Answer from 2025 FDD Document

NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT

Amendments to the Beard Papa's Franchise Agreement

In recognition of the North Dakota Franchise Investment Law, Section 51-19, the parties to the attached Muginoho International, Inc. Franchise Agreement (the "Franchise Agreement") agree as follows:

The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Beard Papa's Shop outlet will be located within the State of North Dakota.

Source: Item 23 — RECEIPTS (FDD pages 58–275)

What This Means (2025 FDD)

According to the 2025 Beard Papas Franchise Disclosure Document, the North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Beard Papa's Shop outlet will be located within the State of North Dakota. This means that the specific amendments listed for North Dakota franchisees, such as those related to general releases, termination, liquidated damages, covenants not to compete, jurisdiction of courts, application of law, and waiver of trial by jury or damages, only take effect if the franchisee resides in North Dakota or operates their Beard Papas shop in North Dakota.

Similarly, the Michigan FDD Amendment states that if any of the listed unfair provisions are in the franchise documents, the provisions are void and cannot be enforced against you. These provisions include prohibitions on joining franchisee associations, requirements to assent to waivers depriving rights and protections, termination before term expiration without good cause, and refusal to renew a franchise without fair compensation. The Washington State Franchise Agreement Amendment indicates that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will prevail. Also, for a franchise purchased in Washington, any arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.

For New York, the amendments address conditions for approval of transfer and renewal, ensuring that rights and causes of action arising from the New York General Business Law remain in force. These amendments are effective if both the Franchisor and Franchisee sign the Muginoho International, Inc. Multi-Unit Development Agreement. The Rhode Island FDD Amendment specifies that restrictions on jurisdiction or venue outside of Rhode Island and general releases as conditions of renewal, termination, or transfer are void with respect to claims under the Rhode Island Franchise Investment Act.

These amendments collectively ensure that Beard Papas franchisees are protected by the specific franchise laws of their respective states, providing clarity on which provisions of the franchise agreement are enforceable and under what conditions. Prospective franchisees should carefully review the amendments applicable to their state to understand their rights and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.