What kind of payment systems does Beard Papas require franchisees to install and use, at their expense?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
ubject to our ACH authorization. You must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate and require in the operation of your Shop. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Note 2: Royalty Fees – The royalty fee is a continuing monthly fee equal to 5% (the "Royalty Rate") of your monthly Gross Sales (the "Royalty Fee").
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, franchisees are required to install and use specific payment systems at their own expense. These include pre-authorized payment systems, point-of-sale (POS) systems, credit card processing, automatic payment systems, automated banking, electronic debit systems, and electronic funds transfer systems. The FDD specifies that Beard Papas will designate which systems franchisees must use. Currently, Beard Papas requires franchisees to use the Clover POS system.
These systems are essential for managing transactions and financial operations within a Beard Papas franchise. The franchisee is responsible for all costs associated with these systems, including service charges and fees charged by their bank for electronic debits. This ensures that Beard Papas can electronically debit the franchisee's designated bank account for various fees payable to them or their affiliates.
The POS system also incurs a monthly license fee, payable either to Beard Papas or a designated supplier. While the POS system fee covers the license for the designated system, it does not include additional fees such as credit card processing fees or integrations for online ordering, customer rewards, and gift cards. These additional services may incur separate fees, ensuring that franchisees have access to a comprehensive suite of tools for managing their business operations.
Prospective franchisees should carefully consider these technology requirements and associated costs when evaluating the financial feasibility of a Beard Papas franchise. Understanding the specific systems required and their associated fees is crucial for budgeting and ensuring smooth business operations.