When is the Operations Non-Compliance fee due for a Beard Papas franchise?

Question

Accepted Answer

|  | Amount | Due Date | Remarks |
|---|---|---|---|
|  |  |  |  |
|  |  |  |  |
| Royalty (Notes 2 and 3) | 5% of Gross Sales | Monthly on the 7th of each month for the preceding month | Will be debited automatically from your bank account by ACH or other means designated by us. |
| Brand Development Fund (Note 4) | Up to 2% of Gross Sales | Monthly on the 7th of each month for the preceding month | Will be debited automatically from your bank account by ACH or other means designated by us. |
| Franchisee Directed | 2% of Gross Sales | As incurred | Must be spent by you monthly on |
| Local Marketing |  |  | pre-approved marketing within your |
| (Note 5) |  |  | designated territory. |
| POS System (Note 6) | Varies under the circumstances | Monthly as invoiced | Monthly license for point of sale system. Payable to us or supplier as we designate. |
| Online Ordering, Customer Rewards, and Gift Cards (Note 7) | Currently not implemented by us but may be implemented in the future | As invoiced and as incurred | Fees for access to ordering and other systems we designate for online ordering, customer rewards, and/or gift card system management and redemption. |
| Technology (Note 8) | Up to $500 per month, currently not assessed | Monthly as invoiced | Will be debited automatically from your bank account by ACH or other means designated by us. |
| Local and Regional Advertising Cooperatives (Note 9) | Established by cooperative members, but not exceeding the local marketing requirement, currently not assessed | As established by cooperative members | If we authorize an Advertising Cooperative, fees that you pay to the cooperative will count to the satisfaction of your Franchisee Directed Local Marketing Requirements and will not exceed the local marketing requirements. |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $1,200 | When invoiced and before conference | Applies to conference fee for an annual System conference. |
| Additional Employee Initial Training | Our then current training fee, currently $5,000 | When invoiced and prior to training | Our initial pre-opening training is provided for you or your Managing Owner and two designated managers. This fee applies to additional individuals or replacement managers that we authorize or require to participate in training. You are responsible for all fees, wages, and expenses associated with attendance. |
| Supplemental On-Site Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $800 per day | When invoiced and prior to training | If you request or we require on-site training at your Shop, you must pay our then current trainer fee plus our expenses related to travel and accommodations. There is a two day minimum for supplemental on-site training. |
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due to us under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |

Source: Item 6 — OTHER FEES (FDD pages 13–17)

When is the Operations Non-Compliance fee due for a Beard Papas franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

	Amount	Due Date	Remarks


Royalty (Notes 2 and 3)	5% of Gross Sales	Monthly on the 7th of each month for the preceding month	Will be debited automatically from your bank account by ACH or other means designated by us.
Brand Development Fund (Note 4)	Up to 2% of Gross Sales	Monthly on the 7th of each month for the preceding month	Will be debited automatically from your bank account by ACH or other means designated by us.
Franchisee Directed	2% of Gross Sales	As incurred	Must be spent by you monthly on
Local Marketing			pre-approved marketing within your
(Note 5)			designated territory.
POS System (Note 6)	Varies under the circumstances	Monthly as invoiced	Monthly license for point of sale system. Payable to us or supplier as we designate.
Online Ordering, Customer Rewards, and Gift Cards (Note 7)	Currently not implemented by us but may be implemented in the future	As invoiced and as incurred	Fees for access to ordering and other systems we designate for online ordering, customer rewards, and/or gift card system management and redemption.
Technology (Note 8)	Up to $500 per month, currently not assessed	Monthly as invoiced	Will be debited automatically from your bank account by ACH or other means designated by us.
Local and Regional Advertising Cooperatives (Note 9)	Established by cooperative members, but not exceeding the local marketing requirement, currently not assessed	As established by cooperative members	If we authorize an Advertising Cooperative, fees that you pay to the cooperative will count to the satisfaction of your Franchisee Directed Local Marketing Requirements and will not exceed the local marketing requirements.
Annual Conference Attendance Fee	Our then current conference fee, not greater than $1,200	When invoiced and before conference	Applies to conference fee for an annual System conference.
Additional Employee Initial Training	Our then current training fee, currently $5,000	When invoiced and prior to training	Our initial pre-opening training is provided for you or your Managing Owner and two designated managers. This fee applies to additional individuals or replacement managers that we authorize or require to participate in training. You are responsible for all fees, wages, and expenses associated with attendance.
Supplemental On-Site Training	Our then current daily rate per trainer, plus expenses we incur. Current rate is $800 per day	When invoiced and prior to training	If you request or we require on-site training at your Shop, you must pay our then current trainer fee plus our expenses related to travel and accommodations. There is a two day minimum for supplemental on-site training.
Interest	18% per annum from due date	On demand	Payable on all overdue amounts, fees, charges, and payments due to us under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same.
Reporting Non-Compliance	$150 per occurrence	14 days of invoice	Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement.
Operations Non-Compliance	$450 to $1,000 per occurrence	14 days of invoice	Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re-inspection costs incurred by us.