How does Beard Papas determine the commission fees charged to JFC International Inc.?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Beginning April 1, 2018, the Company entered into a commission rate agreement with JFC International Inc. ("JFC"), an Asian foods importer, to distribute various foods to all domestic Beard Papa's® locations. The Company charges JFC monthly commission fees based upon various established rebate rates, as well as additional volume rebates on sales of certain products. The rebate rates and amounts are determined by the rebate agreement. Commission income is recognized at the point in time when the rebate is earned each period as the underlying sales by JFC occur.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the company has a commission rate agreement with JFC International Inc. since April 1, 2018. JFC is an Asian foods importer that distributes various foods to all domestic Beard Papa's locations.
Beard Papas charges JFC monthly commission fees that are based upon established rebate rates. In addition to the rebate rates, Beard Papas also charges additional volume rebates on sales of certain products. The specific rebate rates and amounts are determined by the rebate agreement between Beard Papas and JFC International Inc.
The commission income that Beard Papas receives from JFC is recognized at the point in time when the rebate is earned each period as the underlying sales by JFC occur. This means that Beard Papas recognizes the income as JFC makes sales of the products to Beard Papas locations.