When is the Brand Development Fund Fee due from a Beard Papas franchisee?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) for each monthly Accounting Period (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 2% of the Gross Sales of the Franchised Business for each monthly Accounting Period;
- (2) Franchisor will provide Franchisee with written notice of the percentage of Gross Sales that Franchisee is required to contribute to the Brand Development Fund. Upon such written notice to Franchisee, the percentage of Gross Sales to be paid by Franchisee to the Brand Development Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees;
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the Brand Development Fund Fee is due on the Due Date for each monthly Accounting Period. The fee is a mandatory and continuing fee, calculated as a percentage of Gross Sales, as determined by Beard Papas. However, the franchisee will not be required to contribute more than 2% of Gross Sales for each monthly Accounting Period.
Beard Papas will provide written notice to the franchisee specifying the percentage of Gross Sales required for the Brand Development Fund Fee. This percentage will remain applicable for each monthly Accounting Period throughout the term, unless otherwise designated in writing by Beard Papas.
The Brand Development Fund Fee must be paid to Beard Papas on the Due Date, following the same payment terms and methods outlined in Article 5.B for Royalty Fees. This means that the Brand Development Fund Fee is collected alongside royalty payments, simplifying the payment process for the franchisee.