Under the Beard Papas Franchise Agreement, what specific license is granted to the franchisee regarding trademarks?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the terms of the Franchise Agreement, you will be granted a license to use the "Beard Papa's" trademark and those other marks that we designate. Our affiliate DAY TO LIFE CO., Ltd. is the owner of the Licensed Marks and has granted to us a license to use the Licensed Marks and to license our franchisees to use the Licensed Marks (the "License Agreement"). We reserve the right to supplement and modify the marks that you may or may not use in connection with the operations of your Shop. You may only use the Licensed Marks as authorized by us in writing and under the terms of your Franchise Agreement. You may not use the Licensed Marks in the name of any Corporate Entity that you establish.
Source: Item 13 — TRADEMARKS (FDD pages 40–42)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, franchisees are granted a license to use the "Beard Papa's" trademark and other designated marks under the terms of the Franchise Agreement. This license is granted by Beard Papas, who in turn, has a license from their affiliate, DAY TO LIFE CO., Ltd., the owner of the Licensed Marks. Beard Papas retains the right to modify or supplement the marks used in connection with the franchise operations. Franchisees are only allowed to use the Licensed Marks as authorized in writing by Beard Papas and according to the Franchise Agreement terms. The agreement explicitly prohibits using the Licensed Marks in the name of any corporate entity established by the franchisee.
Beard Papas will protect the franchisee's right to use the Licensed Marks and defend against infringement claims, provided the franchisee uses the marks as specified in the Franchise Agreement, manuals, and written instructions. Franchisees must promptly notify Beard Papas of any claims and allow them sole control over the defense and settlement. If a third party establishes superior rights to the Licensed Marks, Beard Papas may modify or replace the marks, and the franchisee must use the new marks. In such cases, Beard Papas's liability is limited to reimbursing the franchisee's direct out-of-pocket costs for complying with the changes, such as alterations in signage and marketing materials, which must be documented to Beard Papas's satisfaction.
The principal trademarks used in the Beard Papas system are registered with the United States Patent and Trademark Office (USPTO). These registered trademarks include "BEARD PAPA’S FRESH’N NATURAL CREAM PUFFS" (Registration Number 2933851, renewed March 2, 2015; and Registration Number 2960525, renewed June 13, 2015) and "BEARD PAPA’S" (Registration Number 5732490, registered April 23, 2019). There are no current agreements that significantly limit Beard Papas's right to use or license these principal trademarks. However, some principal trademarks are not registered with the USPTO, which means they do not have the same legal protections as federally registered trademarks. If the right to use these unregistered trademarks is challenged, franchisees may need to switch to alternative trademarks, potentially increasing their expenses.