How often can a Beard Papas franchisee request an accounting of the Brand Development Fund?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand Development Fund will maintain unaudited financial records detailing its expenditures and will make available to you, no more frequently than one time in any 12 month period, an unaudited accounting of how monies contributed to the Brand Development Fund were spent each year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, a franchisee can request an accounting of the Brand Development Fund, but no more than one time in any 12-month period. This accounting will be unaudited and will detail how the monies contributed to the Brand Development Fund were spent each year.
This means that while Beard Papas franchisees are entitled to some transparency regarding the Brand Development Fund, they cannot request frequent or continuous updates. The accounting is provided on an annual basis and is not subject to audit, which may limit the depth of information available.
It is important to note that Beard Papas is not required to segregate the Brand Development Fund from its general operating funds and is not considered a fiduciary or trustee of the fund. This arrangement gives Beard Papas significant discretion in managing the fund, so understanding the annual accounting is crucial for franchisees to assess how their contributions are being utilized.