Is third-party financing available for leasehold improvement costs for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 6: Furniture, Fixtures and Equipment – You will be required to purchase certain types of furniture, fixtures and equipment for your Shop. Among other things, you will be required to purchase baking equipment, mixing equipment, refrigeration, freezers, kitchen equipment, prep stations, smallwares, and service stations, from us, our approved manufacturers, and/or suppliers and/or subject to our specifications. The costs for furniture and fixtures may differ depending on the material quality and on other factors. Significant factors that will influence and will increase the cost of furniture, fixtures and equipment will depend on the size of your Shop. The costs listed here do not include any transportation or set up costs. It is assumed that some of the equipment will be leased. If you elect to purchase such equipment, your costs may be higher. Third party financing may be available for qualified candidates for some of the leasehold improvement costs, however, with such financing comes associated costs and fees which will cause the cost to exceed what is indicated in this table.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–26)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, third-party financing may be available to qualified candidates for leasehold improvement costs. However, the FDD notes that such financing comes with associated costs and fees. These additional costs and fees will cause the total cost to exceed the initial estimates provided in the table.
This implies that while financing options exist, franchisees should carefully consider the overall financial impact, including interest and fees, when deciding whether to pursue third-party financing for leasehold improvements. The FDD does not specify which third-party financing options are available, so prospective franchisees should discuss available options with the franchisor.
It is common in the franchise industry for franchisors to have relationships with preferred lenders who understand the franchise model. These lenders may offer financing for various aspects of the business, including leasehold improvements, equipment, and working capital. However, franchisees are generally not obligated to use these preferred lenders and can explore other financing options as well.