What is included in the calculation of rent expenses for Beard Papas under noncancelable lease agreements?

According to the 2025 Beard Papas FDD, the company's rent expenses under noncancelable lease agreements for the years ended December 31, 2023, and 2022 were approximately $168,000 and $70,000, respectively. This indicates the total rent paid by Beard Papas as a company, not necessarily the expenses a franchisee would incur.

While this excerpt provides the overall rent expenses for Beard Papas, it does not detail the specific components included in the rent calculation. Common components of rent calculations in franchise agreements often include base rent, common area maintenance (CAM) charges, real estate taxes, and insurance. The absence of this detail means prospective franchisees need to seek clarification from Beard Papas regarding what specific costs are included in their rent obligations.

To gain a clearer understanding, potential Beard Papas franchisees should ask the franchisor for a comprehensive breakdown of what constitutes rent expenses. This should include specifics on whether the stated rent covers only the base amount or incorporates additional charges such as CAM, property taxes, and insurance. Understanding these details is crucial for accurate financial planning and assessing the overall profitability of a Beard Papas franchise.