Under what condition will Beard Papas reimburse a franchisee for administrative expenses related to protecting the Licensed Marks?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sign all documents, instruments and agreements and undertake the actions that we, with
the advice of our legal counsel, determine to be necessary or advisable for the protection and/or maintenance of our interests in the Licensed Marks in any legal proceeding, administrative proceeding or as may be otherwise determined by us. As to the foregoing, we will reimburse you for the reasonable out-of-pocket administrative expenses that you incur and pay in complying with our written instructions.
Source: Item 13 — TRADEMARKS (FDD pages 40–42)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, a franchisee may be reimbursed for reasonable out-of-pocket administrative expenses related to protecting and maintaining Beard Papas's interests in the Licensed Marks. This reimbursement is contingent upon the franchisee complying with Beard Papas's written instructions.
Specifically, if Beard Papas, with the advice of its legal counsel, determines that certain actions or documents are necessary for the protection and maintenance of its interests in the Licensed Marks, the franchisee is obligated to undertake those actions and sign the required documents. In such instances, Beard Papas will cover the reasonable out-of-pocket administrative expenses that the franchisee incurs as a direct result of following these written instructions.
This arrangement means that while franchisees are expected to cooperate in protecting the brand's trademarks, they will not necessarily bear the financial burden of administrative tasks directly requested by Beard Papas to safeguard its licensed marks. It is important for prospective franchisees to understand the scope of these potential administrative tasks and what constitutes 'reasonable out-of-pocket expenses' to ensure clarity and avoid disputes in the future.