What written promise must the Beard Papas franchisee, Owners, and their spouses make regarding participation in competitive businesses during the term of the Franchise Agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
You and each Owner and spouse must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), neither you nor your Owners and their spouses will participate in any competitive business located within and/or servicing customers located within your Designated Territory and a 25 mile radius surrounding your Designated Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 10 mile radius of any other Beard Papa's Shop and/or the designated territory of any other Beard Papa's Shop. Your managers and all other employees and agents with access to our confidential information will be required by us to sign a confidentiality agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, franchisees, their owners, and their spouses must agree in writing to refrain from participating in any business that competes with the Beard Papas franchised business during the term of the Franchise Agreement. This commitment is part of a broader set of obligations they undertake.
Specifically, the written promise includes an agreement not to engage in any competitive business within the designated territory or a 25-mile radius of it for 24 months after the termination or expiration of the Franchise Agreement. This period is tolled during any non-compliance. Furthermore, they must not participate in any competitive business within a 10-mile radius of any other Beard Papa's shop or its designated territory.
This non-compete agreement is a standard practice in franchising to protect the brand and the interests of other franchisees. It ensures that franchisees and related parties do not leverage the knowledge and experience gained from the Beard Papas system to directly compete with the franchise during the agreement term and for a reasonable period afterward within specified geographic boundaries. This restriction is intended to maintain the integrity of the Beard Papas brand and prevent unfair competition within the franchise network.