To whom are lease deposits and rent payments made 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 | |||
| Construction and | $35,000 – $150,000 | As arranged | As incurred | Contractors, |
| Leasehold | suppliers, and/or | |||
| Improvements (Note 2) | landlord | |||
| Lease Deposits and | $18,000 – $96,000 | As arranged | As incurred | Landlord |
| Rent – Three Months | ||||
| (Note 3) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–26)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, lease deposits and rent payments are made directly to the landlord. This is detailed in Item 7, which outlines the estimated initial investment for opening a Beard Papas shop, whether it's a stand-alone or kiosk location. The FDD specifies that franchisees will likely need to lease a location that meets Beard Papas's standards.
The estimated initial investment includes a line item for "Lease Deposits and Rent – Three Months," with a range of $18,000 to $96,000 for a stand-alone shop. The document clearly states that these funds are paid to the landlord. This deposit typically covers the first few months of rent and is a standard practice in commercial leasing. The exact amount is something the franchisee will negotiate directly with the landlord, and it can vary based on location and negotiation skills.
This arrangement means that Beard Papas franchisees will need to establish a direct relationship with their landlord and manage their lease agreements independently. While Beard Papas approves the location, the financial responsibility for lease payments and deposits rests solely with the franchisee. This is a common arrangement in franchising, where the franchisee operates as an independent business owner responsible for their location's lease terms.