Under what conditions will a Beard Papas franchisee be considered in default of the Franchise Agreement, leading to potential termination after a 30-day cure period?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Amendments to the Beard Papa's Franchise Disclosure Document
-
- THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
- C. A provision that permits us to terminate a franchise before the expiration of this term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, a franchisee's failure to comply with any lawful provision of the Franchise Agreement can constitute grounds for termination, provided the franchisee is given written notice of the failure and a reasonable opportunity to cure it. The FDD specifies that this cure period need not be more than 30 days. This amendment is specific to franchisees in Michigan.
This means that if a Beard Papas franchisee in Michigan violates any part of their agreement with Beard Papas, the franchisor must first notify them in writing and give them a chance to fix the problem. This opportunity to correct the issue must be at least a reasonable amount of time, but the franchisor is not required to give more than 30 days. If the franchisee fails to remedy the situation within this timeframe, Beard Papas can then terminate the agreement.
It's important to note that this specific clause regarding a 30-day cure period applies specifically to Michigan franchisees due to state-specific franchise laws. Franchisees in other states may have different cure periods or termination conditions as outlined in their respective franchise agreements and state laws. Prospective franchisees should carefully review their Franchise Agreement and consult with legal counsel to understand their rights and obligations regarding default and termination.