For Beard Papas, am I required to use a designated supplier for credit card processing?

According to Beard Papas's 2025 Franchise Disclosure Document, franchisees are required to use the franchisor's designated supplier and vendor for credit card processing. This system may be integrated with the point of sale (POS) system that Beard Papas designates. Credit card processing fees are typically based on a percentage of the franchisee's gross sales processed through credit cards.

This requirement ensures uniformity and potentially favorable rates negotiated by Beard Papas. However, it also means franchisees cannot shop around for potentially lower processing fees or preferred vendors. The integration with the POS system suggests a streamlined approach to transaction management, but franchisees should confirm the specific fees and terms associated with the designated supplier.

Franchisees should inquire about the current designated supplier, the exact percentage charged on credit card transactions, and whether there are any other associated fees. Understanding these costs is crucial for projecting operating expenses and profitability. Additionally, franchisees should ask about the process for changing suppliers in the future and whether there are any circumstances under which they might be allowed to use an alternative vendor.