From whom must I purchase System Supplies for my Beard Papas shop?

According to Beard Papas's 2025 Franchise Disclosure Document, franchisees are required to purchase System Supplies from specific sources. The FDD specifies that a Beard Papas shop must maintain both an initial and ongoing inventory of System Supplies. These System Supplies, as designated by Beard Papas, must be purchased from Beard Papas themselves, their affiliates, or their designated suppliers. This requirement ensures that all franchisees use consistent and approved supplies, helping to maintain the quality and uniformity of the Beard Papas brand.

This restriction on supply sources is a common practice in franchising, allowing Beard Papas to control product quality and maintain brand consistency across all locations. While this ensures standardization, it also limits the franchisee's ability to shop for potentially lower prices or alternative products. The FDD estimates that these source-restricted purchases account for approximately 25% to 50% of the ongoing operating expenses for a Beard Papas franchise.

If a franchisee wishes to use a supplier not already approved by Beard Papas, they must submit a written request for approval. This request must include any additional information, samples, and testing data that Beard Papas may require. Beard Papas may also charge a fee to cover the costs and expenses of evaluating the proposed alternate supplier, product, or service. The approval process can take up to 60 days after Beard Papas receives all necessary information, and Beard Papas retains the sole discretion to withhold approval. This process ensures that any deviation from the approved supply chain meets Beard Papas's standards and protects the brand's reputation.

Beard Papas may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases, and they reserve the right to institute and expand rebate programs in the future. During the fiscal year ending December 31, 2024, Beard Papas earned $459,862.40 in rebates from franchisee purchases, representing 19.6% of their total revenue of $2,348,295. However, the FDD states that franchisees do not receive any material benefits based on their purchase of particular products or services or use of particular suppliers. This arrangement is typical in franchising, where the franchisor benefits from economies of scale and supplier relationships.