What is the range of the Development Area Fee for a Beard Papas Multi-Unit Development Agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due |
|---|---|---|---|
| To Whom Payment is Made | |||
| Development Area Fee (Note 1) | $66,400 – $269,100 | Lump sum | When Franchise Agreement and Multi- Unit Development Agreement are signed |
| Estimated Initial | $118,500 – $432,000 | Estimated Initial Investment is based on the estimates | |
| Investment to Open | contained in Tables A and B, above, of this Item 7, for a | ||
| One Shop | Franchise Agreement, but less the Initial Franchise Fee. | ||
| (Note 2) | See, Tables A and B. | ||
| Total Estimate | $184,900 – $701,100 | ||
| (Note 3) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–26)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the Development Area Fee for a Multi-Unit Development Agreement ranges from $66,400 to $269,100. This fee is paid in a lump sum when the Franchise Agreement and Multi-Unit Development Agreement are signed.
The Development Area Fee is in addition to the Initial Franchise Fee for the first shop. The amount of the Development Area Fee depends on the number of additional Beard Papas shops the franchisee is authorized to develop under the agreement. The minimum number of shops a franchisee may be authorized to develop is three, and the maximum is ten.
For a Multi-Unit Development Agreement authorizing three to four shops, the Development Area Fee is $33,200 for each additional shop beyond the first. If the agreement authorizes five to ten shops, the Development Area Fee is $29,900 for each additional shop. This fee structure incentivizes franchisees to commit to developing a larger number of locations.