Is the initial franchise fee for a Beard Papas franchise refundable?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
d-Alone Shop Franchise Agreement
Note 1: Initial Franchise Fee – The Initial Franchise Fee for a single Beard Papa's Stand-Alone Shop under a Franchise Agreement is $45,000. All fees are non-refundable. We do not finance any portion of your initial fees.
Note 2: Construction and Leasehold Improvements – This estimate is for the cost of construction, construction management and build-out of Beard Papa's Stand-Alone Shop but does not including furniture, fixtures and equipmen
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the initial franchise fee of $45,000 for both a Stand-Alone Shop and a Kiosk Shop is non-refundable. This means that once paid, the franchisee cannot get this fee back from Beard Papas, regardless of whether the franchise opens or not. Beard Papas does not offer financing for any portion of the initial fees. This policy is common in the franchise industry, as the initial fee covers Beard Papas's costs for granting the franchise and providing initial support.
For franchisees developing multiple locations under a Multi-Unit Development Agreement, the initial franchise fee is waived for each additional Development Shop beyond the first, provided the franchisee is not in default of the agreement. However, this waiver only applies to the initial franchise fee for subsequent locations; all other fees and obligations remain in effect.
It's important to note an amendment to the FDD for North Dakota specifies that refund and cancellation provisions will not apply to franchises operating under North Dakota law. In the event that Beard Papas cancels the Franchise Agreement in North Dakota, they are entitled to a reasonable fee to cover evaluation and preparatory work. Additionally, a Wisconsin FDD amendment notes that the Wisconsin Fair Dealership Law may affect the termination provision of the Franchise Agreement.