Can the Beard Papas Brand Development Fund borrow from the Franchisor or other lenders?

According to Beard Papas's 2025 Franchise Disclosure Document, the Brand Development Fund is permitted to borrow funds from the Franchisor or other lenders. These loans would be obtained at standard commercial interest rates to cover any deficits the fund may experience. This provides flexibility in managing the fund's finances, ensuring that marketing and development activities can continue even if current revenues are insufficient.

Additionally, Beard Papas may invest any surplus funds for future use by the Brand Development Fund. Any interest earned on the Brand Development Fund's monies will be used to cover the fund's costs before other assets are used. This ensures that the fund's earnings are reinvested to support its activities and growth.

This arrangement provides Beard Papas with options to maintain a consistent level of marketing and development efforts, regardless of short-term fluctuations in income. However, franchisees should be aware that the Brand Development Fund is not a trust and that Beard Papas has significant discretion in managing the fund. Franchisees should request and review the summary statement of monies collected and costs incurred by the Brand Development Fund to stay informed about its financial status and activities.