When is the initial franchise fee due for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 initial franchise fee of $45,000 is due when the Franchise Agreement is signed. This fee is paid directly to Beard Papas in a lump sum.
For a prospective Beard Papas franchisee, this means that upon signing the agreement to open a franchise, $45,000 must be paid upfront. This is a standard practice in franchising, as the initial fee covers the franchisor's costs for granting the franchise rights and providing initial support.
It's important to note that this fee is non-refundable, as stated in the explanatory notes of Item 7. Therefore, potential franchisees should carefully consider their decision before signing the Franchise Agreement and paying the initial fee. For multi-unit development agreements, the initial franchise fee may be discounted to $33,200 or $29,900 depending on the number of shops the franchisee is authorized to develop.