Is Beard Papas required to conduct any advertising on behalf of the franchise system or on behalf of the franchisee?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
ssion of the written request and sample marketing materials. We are not required to spend any amount on your behalf on advertising in your designated territory and we are not required to conduct any advertising on behalf of the franchise System or on your behalf. (Franchise Agreement, Article 9);
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- Local Marketing You are not authorized to engage in any marketing unless it is pre-approved by us in our discretion (Franchise Agreement, Article 9.B.). On an on-going and monthly basis, you must spend not less than 2% of your monthly Gross Sales on the local marketing of your Shop. We will review your local marketing programs and notify you if we approve same. We will make available to you and provide you with access, in the form of a source document, to our approved marketing campaigns, media, and messaging that may be used by you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, Beard Papas is not required to spend any amount on advertising on behalf of the franchisee or the franchise system. However, Beard Papas may administer a Brand Development Fund, where franchisees contribute a monthly sum not to exceed 2% of monthly Gross Sales. During the fiscal year ending December 31, 2024, Beard Papas collected $146,725.17 towards the Brand Development Fund and spent 100% of it on social media marketing.
Beard Papas maintains full discretion over marketing standards, materials, and media used for promotion. Franchisees must obtain written pre-approval for all advertising and marketing efforts. Beard Papas may provide approved marketing templates, but franchisees bear the costs of customizing, duplicating, and distributing these materials. Franchisees are also required to spend a minimum of 2% of their monthly Gross Sales on local marketing for their shop, subject to Beard Papas's approval.
Beard Papas may establish local or regional advertising cooperatives, requiring franchisees to contribute as determined by the cooperative. However, contributions to these cooperatives will not exceed the local marketing requirements. As of December 31, 2024, no such cooperatives have been established. Beard Papas also reserves the right to form an advertising council in the future. The Brand Development Fund will not be used to directly promote an individual shop or its marketing area.