What are the main components of Beard Papas' revenues?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
9,000. The Company's cash and cash equivalents balances as of December 31, 2023 exceeded the total amounts insured by FDIC's general deposit insurance rules by approximately $945,000.
Major Customers
One major customer accounted for appropriately 26% and 28% of total revenue for the years ended December 31, 2024 and 2023, respectively. This customer accounted for 23% and 38% of accounts receivable as of December 31, 2024 and 2023, respectively. The Company routinely monitors and assesses the financial strength of its customers. As a result, the Company believes that the concentration of credit risk is limited.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, one major customer accounted for a significant portion of the company's total revenue. Specifically, this customer contributed approximately 26% of the total revenue for the year ending December 31, 2024, and 28% for the year ending December 31, 2023. This same customer also represented a notable portion of the accounts receivable, accounting for 23% as of December 31, 2024, and 38% as of December 31, 2023.
This reliance on a single major customer presents both opportunities and risks for Beard Papas. On one hand, a strong relationship with a major customer can provide a stable and predictable revenue stream. On the other hand, it creates a concentration of credit risk, as a significant portion of the company's revenue and accounts receivable are tied to the financial health and continued business of this one customer. Beard Papas mitigates this risk by routinely monitoring and assessing the financial strength of its customers.
Additionally, the FDD mentions that Beard Papas uses one supplier, an affiliate in Singapore, for all the frozen doughs sold at all Beard Papa's locations since January 1, 2016. They also use an exclusive manufacturer/distributor to distribute packing materials to Beard Papa's locations. While this information doesn't directly address the components of revenue, it highlights key aspects of Beard Papa's supply chain and potential dependencies that could indirectly impact revenue generation.