What are 'Management Service Fees' in the context of a Beard Papas franchise?
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)
According to Beard Papas's 2025 Franchise Disclosure Document, Management Service Fees are fees and expenses that the franchisor charges for management services. If a Beard Papas franchise is not being managed by a Managing Owner or Operating Manager who has completed the required training program, Beard Papas is authorized to appoint a manager to oversee the franchise's operations on behalf of the franchisee.
Beard Papas determines whether to provide these management services, the extent of the services, and when to discontinue them, based on their reasonable business judgment. The franchisee is responsible for paying these fees immediately upon receiving an invoice from Beard Papas.
It's important to note that even if Beard Papas appoints a manager, the franchisee remains responsible for their obligations under the franchise agreement. Beard Papas is not liable for any debts, losses, costs, or expenses incurred during the period when the appointed manager is running the franchise. This arrangement ensures that Beard Papas can maintain the operational standards of the franchise while holding the franchisee accountable for their contractual duties.