Are Beard Papas franchisees required to pay supplemental training fees?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisor reasonably specifies;
- (9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement, except that, following a Transfer that fully complies with this Article 14.C., Franchisee, each Owner, and each Spouse shall not be obligated to pay any Royalty Fees and Advertising Contributions which accrue following the date of the approved Transfer;
- (10) At the transferee's expense, the transferee, and the transferee's Managing Owner, managers
and/or any other applicable employees of transferee's Beard Papa's Shop must complete any training programs then in effect for franchisees of Beard Papa's Shops upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;
- (11) Franchisee must pay the Transfer Fee to Franchisor, which is a fixed sum of $15,000 (the "Transfer Fee");
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, if a franchisee transfers their franchise to a new owner, the new owner may need to complete training programs. The transferee bears the expense for these training programs. Additionally, if the current Managing Owner or Operating Manager has not satisfactorily completed the training program, Beard Papas may appoint a manager and charge fees for management services.
Specifically, in the event of a franchise transfer, the transferee, along with their Managing Owner, managers, and other applicable employees, must complete any training programs that Beard Papas has in effect for franchisees. These training programs are subject to the terms and conditions outlined in the Franchise Agreement or as Beard Papas otherwise reasonably requires. This ensures that the new management is aligned with Beard Papas's operational standards.
Furthermore, if the Franchised Business is not being managed by a Managing Owner or Operating Manager who has satisfactorily completed the Training Program, Beard Papas has the option to appoint a manager to oversee the operations. In such cases, Beard Papas can charge fees and expenses for these management services, with the specific amounts determined by Beard Papas in its Reasonable Business Judgment. These Management Service Fees are payable immediately upon invoicing.
These stipulations ensure that Beard Papas maintains consistent operational standards across all franchise locations, even during ownership transitions or management gaps. Franchisees should be aware of these potential costs and ensure that their managers are adequately trained to avoid additional fees.