When is the Payment Non-Compliance fee due for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | Due Date | Remarks | |
|---|---|---|---|
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the Payment Non-Compliance fee is $150 per occurrence and is due 14 days from the date of the invoice. This fee is charged if a franchisee fails to make a payment to Beard Papas on time, as required by the Franchise Agreement. In addition to the $150 fee, the franchisee is also responsible for covering any interest, costs, and legal fees associated with the late payment.
Franchisees should be aware of the importance of timely payments to avoid incurring this fee. Setting up systems for managing and tracking payment deadlines is crucial. The Payment Non-Compliance fee is in addition to any interest charged on overdue amounts, which is specified elsewhere in the FDD as 18% per annum from the due date.
This fee structure is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and support the franchise system. Franchisees should carefully review the payment terms outlined in the Franchise Agreement and ensure they have sufficient funds available to meet their obligations to Beard Papas.