When is the Local and Regional Advertising Cooperatives fee due for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | Due Date | Remarks | |
|---|---|---|---|
| Local and Regional Advertising Cooperatives (Note 9) | Established by cooperative members, but not exceeding the local marketing requirement, currently not assessed | As established by cooperative members | If we authorize an Advertising Cooperative, fees that you pay to the cooperative will count to the satisfaction of your Franchisee Directed Local Marketing Requirements and will not exceed the local marketing requirements. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the due date for Local and Regional Advertising Cooperatives fees is "as established by cooperative members." This means the payment schedule is not fixed by Beard Papas itself but is determined by the advertising cooperative if one is formed in the franchisee's area. The fee is currently not assessed.
If two or more Beard Papas shops operate within a designated market, Beard Papas reserves the right to establish and require participation in a local or regional advertising cooperative. Franchisees are then required to make ongoing payments to the cooperative, with the amounts and caps determined by the cooperative members. Each shop franchisee typically has one vote per shop within the cooperative market, and decisions are made by a simple majority vote, assuming a quorum of at least 25% of the designated cooperative members is present.
Contributions to these cooperatives, if designated by Beard Papas, count toward satisfying the franchisee's minimum local marketing obligations and will not exceed the local marketing requirements. This provides a mechanism for franchisees to pool resources for advertising efforts, but the specific payment terms are contingent on the formation and rules of the local cooperative.