When is the Royalty fee due for a Beard Papas franchise?

According to Beard Papas's 2025 Franchise Disclosure Document, the royalty fee, which is 5% of gross sales, is due monthly on the 7th of each month for the preceding month. This means that a Beard Papas franchisee must calculate 5% of their total gross sales for the previous month and remit that amount to the franchisor by the 7th of the current month. Gross sales include all revenues from the shop, including cash, credit, and any other form of consideration, but exclude sales taxes and authorized promotional discounts.

Beard Papas will automatically debit the royalty fee from the franchisee's bank account via ACH or another designated method. To facilitate this, franchisees are required to sign an ACH Authorization Form, allowing Beard Papas to electronically debit their account. Franchisees must also deposit their shop's gross sales into designated bank accounts subject to this ACH authorization.

It is important for prospective Beard Papas franchisees to understand that the royalty fee is a recurring monthly expense that must be factored into their operating budget. Failure to pay the royalty fee on time can result in penalties, including interest on overdue amounts. Franchisees should also be aware of the specific definition of "Gross Sales" to ensure accurate calculation and reporting of their monthly sales figures.