Is the Franchisor for Beard Papas considered a trustee or fiduciary of the Brand Development Fund?

According to the 2025 Beard Papas Franchise Disclosure Document, Beard Papas is not considered a trustee or fiduciary of the Brand Development Fund. The FDD explicitly states that the Brand Development Fund is not a trust and that Beard Papas is not a trustee or fiduciary of the fund. Furthermore, Beard Papas is allowed to deposit and maintain the Brand Development Fund fees in its general accounts, and these fees are not required to be segregated from other assets or accounts of Beard Papas.

This arrangement means that Beard Papas has significant control over the Brand Development Fund, and is not held to the same legal standards as a trustee or fiduciary would be. A trustee or fiduciary has a legal obligation to act in the best interests of the beneficiaries of the trust, whereas Beard Papas has more discretion in how the fund is managed and spent.

For a prospective franchisee, this is an important consideration. While Beard Papas is expected to use the Brand Development Fund to promote the Beard Papas brand, there is no guarantee that the funds will be spent in a way that directly benefits each individual franchise location. Franchisees should carefully consider the implications of this arrangement and how it aligns with their own business goals and expectations. It is important to note that Beard Papas-owned shops are not required to contribute to the Brand Development Fund.