In the Beard Papas Multi-Unit Development Agreement, what is the amount of the Development Area Fee?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
In exchange for the rights set forth and granted pursuant to the terms of this Agreement, upon execution of this Agreement, Franchisee shall pay to Franchisor a development area fee (the "Development Area Fee"). The Development Area Fee is not refundable under any circumstance.
The amount of the Development Area Fee is set forth in the Development Information Sheet.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the Development Area Fee is determined by the Development Information Sheet. Section 4.1 of the agreement states that the franchisee must pay a development area fee to the franchisor upon execution of the agreement, in exchange for the rights granted in the agreement. This fee is non-refundable under any circumstances.
However, the specific dollar amount for the Development Area Fee is not explicitly listed in the provided excerpts. Instead, the FDD indicates that the amount is "set forth in the Development Information Sheet," which is attached to the Multi-Unit Development Agreement as Schedule A.
For a prospective Beard Papas franchisee, it is crucial to carefully review the Development Information Sheet (Schedule A) to determine the exact amount of the Development Area Fee. Since the fee is non-refundable, understanding the financial commitment is essential before signing the agreement. It would be prudent to discuss this fee and its implications with the franchisor to fully understand the financial obligations involved in the multi-unit development agreement.