Under what conditions can the Beard Papas Multi-Unit Development Agreement be modified?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| q. | Non-competition covenants during the term of the franchise | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Shop developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Shop developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
| s. | Modification of the agreement | 5.3, 7.11 | Only by written agreement between you and us or if governing law requires a modification. We can change the form of the Franchise Agreement for future Shops which will not alter your obligations under the Multi Unit Development Agreement. |
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 Multi-Unit Development Agreement can only be modified under specific conditions. The agreement can be modified only if there is a written agreement between the franchisee and Beard Papas. Additionally, modifications may be required if mandated by governing law.
Beard Papas retains the right to change the form of the Franchise Agreement for future shops. However, these changes will not alter the franchisee's obligations under the existing Multi-Unit Development Agreement. This ensures that while Beard Papas can update its standard franchise terms, the core commitments of the franchisee remain consistent throughout the development period.
This provision protects both Beard Papas and the franchisee by ensuring that modifications are mutually agreed upon and documented, preventing unilateral changes that could disrupt the development plan. Franchisees should pay close attention to any proposed modifications and seek legal counsel to fully understand their implications.