Does the estimated initial investment for a Beard Papas franchise include the purchase of real property?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3: Lease Deposits and Rent – Three Months – You must operate your Beard Papa's Kiosk Shop from a Shop Location that we approve and complies with state and local laws. If you do not already own or lease a suitable location you will be required to lease a location that meets our standards and is approved by us. This estimate is based on the assumption that you will be leasing your Beard Papa's Shop Location and is for the estimated amount of the initial lease deposit that you will be required to pay to the landlord at the time of signing your lease and before opening your Shop. The estimate is based on the assumption that your lease deposit will be equal to three months of rent payments. The typical square footage for a Kiosk Shop ranges from 300 to 800 square feet. The amount of your lease deposit is something that you will directly negotiate with the landlord and will vary significantly based on a number of factors that include location and your own negotiations. This estimate does not include the purchase of real property should you elect to purchase the real property of your Shop Location.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–26)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the estimated initial investment does not include the purchase of real property. The document specifies that the estimate for lease deposits and rent is based on the assumption that franchisees will be leasing their shop location.
For both Stand-Alone Shops and Kiosk Shops, the FDD clarifies that the initial investment estimate does not cover the purchase of real estate. Instead, it focuses on costs associated with leasing a location. This means that prospective Beard Papas franchisees should plan to lease a location for their shop, as the initial investment figures provided do not account for the potentially significant expense of buying property.
However, the FDD does allow for the possibility that a franchisee may elect to purchase the real property of their Shop Location. If a franchisee chooses to purchase the real property, they should expect costs above and beyond the estimated initial investment laid out in the FDD.