Under what condition is each provision of the amendment effective for Beard Papas franchisees?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD 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.
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 the franchisee is a resident of North Dakota or if their Beard Papa's Shop outlet will be located within the State of North Dakota. This means that the specific amendments outlined for North Dakota franchisees, which address issues like general releases, termination consent, liquidated damages, covenants not to compete, jurisdiction of courts, applicable law, waiver of trial by jury, and waiver of exemplary and punitive damages, are only relevant and enforceable if the franchisee meets either of these conditions.
For franchisees in New York, the amendments to the Beard Papas Franchise Agreement are applicable in recognition of the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and the regulations promulgated thereunder. These amendments ensure that the rights and causes of action arising in favor of the franchisee from the provisions of New York General Business Law Sections 680-695 remain in force, satisfying the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5. This applies to conditions for approval of transfer and conditions for renewal of the franchise agreement.
For Beard Papas franchisees in Washington, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail in the event of a conflict of laws. Additionally, RCW 19.100.180 may supersede the franchise agreement in areas of termination and renewal, and court decisions may also supersede the agreement in these areas. Any arbitration or mediation involving a franchise purchased in Washington will occur in Washington or a mutually agreed-upon location. A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act unless it is part of a negotiated settlement with independent counsel. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable costs in effecting a transfer.
For Beard Papas franchisees in Michigan, the Michigan FDD Amendment states that the State of Michigan prohibits certain unfair provisions that are sometimes in franchise documents. If any of the provisions listed in the amendment are in the franchise documents, the provisions are void and cannot be enforced against the franchisee. These provisions include a prohibition of the franchisee's right to join an association of franchisees; a requirement that the franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided in the act; a provision that permits the franchisor to terminate a franchise before the expiration of its term except for good cause; and a provision that permits the franchisor to refuse to renew a franchise without fairly compensating the franchisee for the fair market value of their inventory, supplies, equipment, fixtures, and furnishings.