What are the ongoing fees that a Beard Papas franchisee must pay as outlined in Item 6, and when are these payments due?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease Agreement Rider, Collateral Assignment of Lease, and the Assignment of Telephone Numbers and Digital Media Accounts, as said agreements, individually and/or collectively, may have been entered into between the foregoing parties.
- "Annual Conference Attendance Fee" refers to and means an annual conference attendance fee
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document, Item 6 outlines the ongoing fees that a franchisee must pay. These fees include Royalty Fees, which are 6% of Gross Sales, and are payable weekly. Additionally, franchisees must contribute to the Advertising Fund, which is 3% of Gross Sales, also payable weekly.
Another potential ongoing fee is the Annual Conference Attendance Fee, which can be up to $1,200 annually, as determined by Beard Papas. These fees are crucial for maintaining the franchise agreement and supporting the Beard Papas system.
It is important to note that Beard Papas has the discretion to apply payments received from the franchisee to any past due indebtedness, including Royalty Fees, Advertising Contributions, or any other amounts owed to Beard Papas or its affiliates. Franchisees are not entitled to withhold payments due to Beard Papas under any circumstances, even if they believe Beard Papas is not fulfilling its obligations.