What was the management fee paid to an affiliate by Beard Papas in 2022?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to charge fees and expenses, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, for management services (the "Management Service Fees").
Any determination as to whether or not Franchisor may elect to provide management services, if any, and the extent of such services, and/or the discontinuation thereof, shall be exclusively determined by Franchisor in Franchisor's Reasonable Business Judgment.
The Management Service Fee shall be immediately payable upon invoice by us.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
I am unable to provide the specific amount of management fees paid to an affiliate by Beard Papas in 2022, as the provided excerpts from the 2025 Franchise Disclosure Document do not contain this information. The excerpts do discuss management service fees that Beard Papas has the right to charge if they appoint a manager to maintain operations of the franchised business on behalf of the franchisee.
The FDD states that Beard Papas can appoint a manager if the Franchised Business is not being managed by a Managing Owner or Operating Manager who has satisfactorily completed the Training Program. In such cases, Beard Papas has the right to charge fees and expenses, determined in their reasonable business judgment, for these management services. These Management Service Fees are immediately payable upon invoicing.
To determine the management fees paid to an affiliate in 2022, a prospective franchisee should ask Beard Papas directly for clarification. Specifically, they should inquire about any instances where Beard Papas appointed a manager for a franchise and the associated fees, particularly if any of those managers were affiliated with Beard Papas. This information would provide a clearer understanding of potential costs and the circumstances under which they might be incurred.