Under what conditions can the Beard Papas Franchise Agreement be modified?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| r. Non-competition covenants after the franchise is terminated or expires | 6, 17.E. | No involvement, ownership, or interest whatsoever for 24 months in any competing business in: your Designated Territory; a 25-mile radius of your Designated Territory; a 10-mile radius of the Designated Territory of any other Shop; and you must comply with confidentiality, non- disclosure and non-solicitation covenants. |
|---|---|---|
| s. Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral |
| changes that we may make to the Manuals or our unilateral | ||
| reduction of the scope of a restrictive covenant that we may | ||
| make in our discretion. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the Franchise Agreement can generally be modified only through a written agreement signed by both the franchisee and Beard Papas. However, Beard Papas retains the right to make unilateral changes to the Manuals, which likely contain operational procedures and standards. Additionally, Beard Papas can unilaterally reduce the scope of a restrictive covenant at their discretion.
For franchisees, this means that while significant changes to the core agreement require mutual consent, Beard Papas has the power to alter operational guidelines and potentially lessen restrictions on the franchisee. The FDD also states that for Multi-Unit Development Agreements, modifications can occur through a written agreement between the franchisee and Beard Papas or if required by governing law. Beard Papas can also change the form of the Franchise Agreement for future shops without altering the franchisee's obligations under the Multi-Unit Development Agreement.
It is important for prospective franchisees to understand the implications of these unilateral modification rights. While changes to the Manuals might seem minor, they could impact day-to-day operations and potentially increase costs or alter business practices. The ability of Beard Papas to reduce restrictive covenants could be beneficial, but it's essential to clarify what types of covenants this refers to and under what circumstances such reductions might occur. Franchisees should seek legal counsel to fully understand their rights and obligations regarding modifications to the Franchise Agreement.