What is the penalty for Payment Non-Compliance 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, if a franchisee fails to make timely payments of fees or other amounts due under the Franchise Agreement, they will incur a Payment Non-Compliance fee of $150 per occurrence. This fee is due within 14 days of the invoice date. In addition to the $150 fee, the franchisee is also responsible for paying interest, costs, and legal fees associated with the late payment.
This policy is fairly standard in franchising, as franchisors rely on timely payments to maintain their operations and support services. The Payment Non-Compliance fee serves as a deterrent against late payments and helps Beard Papas cover the administrative costs associated with pursuing overdue amounts. The inclusion of interest, costs, and legal fees further emphasizes the importance of adhering to the payment schedule outlined in the Franchise Agreement.
Prospective Beard Papas franchisees should be aware of this policy and ensure they have sufficient financial resources and systems in place to meet their payment obligations on time. Failure to do so can result in additional expenses and potentially damage their relationship with the franchisor. It is crucial to carefully review the Franchise Agreement and understand all payment terms and conditions before investing in a Beard Papas franchise.