What is the estimated range for lease deposits and rent (three months) for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
ement: Stand-Alone Shop Location
| Amount | Method of Payment | When Due | To Whom Payment is Made | |
|---|---|---|---|---|
| Initial Franchise Fee | $45,000 | Lump sum | When Franchise | Us |
| (Note 1) | Agreement is signed | |||
| Construction and | $35,000 – $150,000 | As arranged | As incurred | Contractors, |
| Leasehold | suppliers, and/or | |||
| Improvements (Note 2) | landlord | |||
| Lease Deposits and | $18,000 – $96,000 | As arranged | As incurred | Landlord |
| Rent – Three Months | ||||
| (Note 3) | ||||
| Ovens (Note 4) | $15,000 – $35,000 | As arranged | As incurred | Suppliers |
| Custard Cream | $30,000 – $35,000 | As arranged | As incurred | Suppliers |
| Equipment | ||||
| (Note 5) | ||||
| Furniture, Fixtures | $20,400 – $40,000 | As arranged | As incurred | Suppliers |
| and Other Equipment | ||||
| (Note 6) | ||||
| Signage (Note 7) | $4,000 – $8,000 | As arranged | As incurred | Suppliers |
| Computer, Software, | $700 – $1,500 | As arranged | As incurred | Suppliers |
| and Point of Sale | ||||
| System (Note 8) | ||||
| Grand Opening | $6,000 | As arranged | As incurred | Us, suppliers |
| Marketing (Note 9) | ||||
| Initial Inventory | $4,300 – $10,000 | As arranged | As incurred | Suppliers |
| (Note 10) | ||||
| Utility Deposits | $500 | As arranged | As incurred | Suppliers |
| (Note 11) | ||||
| Insurance Deposits – | $500 | As arranged | As incurred | Insurers |
| Three Months | – | |||
| (Note 12) | $4,000 | |||
| --------------------------------------------------- | ----------------------------- | ------------- | ------------- | --------------------------------------------------------- |
| Initial Training | $5,000 | As arranged | As incurred | Us |
| Fee | ||||
| (Note 13) | ||||
| Professional Fees (Note 14) | $6,000 – $9,500 | As arranged | As incurred | Attorneys, accountants, architects, advisors |
| Licenses and Permits | $500 – | As arranged | As incurred | Government |
| (Note 15) | $1,500 | |||
| Additional Funds – | $10,000 | As arranged | As incurred | Employees, |
| Three Months | – | suppliers, landlord, | ||
| (Note 16) | $30,000 | utility suppliers | ||
| Total Estimate (Note |
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 for lease deposits and three months' rent ranges from $18,000 to $96,000. This estimate is applicable for both Stand-Alone Shop and Kiosk Shop franchise agreements. The FDD indicates that this cost is 'as incurred' and paid directly to the landlord.
The estimate assumes that the franchisee will be leasing the Beard Papas shop location. The lease deposit is expected to be equal to three months of rent payments. However, the actual amount of the lease deposit and rent is subject to negotiation between the franchisee and the landlord. This negotiation will likely be influenced by factors such as the location of the shop and the franchisee's negotiation skills.
It is important to note that this estimate does not include the purchase of real property if a franchisee chooses to buy the shop location. The FDD also specifies that the typical square footage for a Stand-Alone Shop ranges from 300 to 1,000 square feet, while a Kiosk Shop ranges from 300 to 800 square feet. This difference in square footage could influence the lease deposit and rent amounts.