How are continuing fees (royalties) charged to Beard Papas' international franchisees?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
for each and every Development Shop on or before the earlier of: (a) the date Franchisee (subject to Franchisor's approval of the Shop Location) executes a lease for the Shop Location for each respective Development Shop; (b) the date Franchisee (subject to Franchisor's approval of the Shop Location) enters into a purchase agreement for the real estate for the Shop Location for each respective Development Shop; or (c) six months prior to the date that each respective Development Shop must be open and in operation pursuant to the Development Schedule.
5.2 ROYALTY FEES AND OTHER FRANCHISE AGREEMENT FEES ACKNOWLEDGMENT
Franchisee agrees that pursuant to the terms of each respective Franchise Agreement respecting and/or concerning the Development Area and/or this Agreement, that nothing contained in this Agreement shall obviate and/or reduce Franchisee's obligations as set forth in each respective Franchise Agreement including, without limitation, Franchisee's obligations, respectively, to pay royalty and all other fees in accordance with each respective Franchise Agreement. Nothing contained in this Agreement shall modify, reduce or mitigate Franchisee's obligations to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the specifics of royalty fees for international franchisees are determined by the individual franchise agreements. The FDD states that the franchisee's obligations to pay royalties and other fees are set forth in each respective Franchise Agreement. The document emphasizes that nothing within the agreement should reduce or modify these obligations to Beard Papas.
This means that the royalty fees for a Beard Papas international franchisee are not standardized in the main body of the FDD but are instead customized and detailed within the specific franchise agreement that the franchisee signs. These fees are a crucial part of the ongoing financial obligations of the franchisee.
Prospective international franchisees should carefully review the terms of their individual franchise agreement to fully understand how royalty fees are calculated, when they are due, and what methods of payment are acceptable. It is also important to note that Beard Papas retains the right to modify the Franchise Agreement, and reasonable modifications will not alter the franchisee's obligations.