According to Beard Papas's 2025 Franchise Disclosure Document, as of December 31, 2022, the company held approximately $103,000 in refundable deposits from franchisees. These deposits are returned to the franchisees at the end of the franchise term, but are subject to forfeiture if franchisees default on their franchise agreements.

This deposit payable represents the total amount of money Beard Papas holds that will be returned to franchisees assuming they fulfill the terms of their agreements. It is important to note that this is a liability on Beard Papas's balance sheet, as it represents money owed to franchisees in the future.

Prospective franchisees should understand the conditions under which these deposits are forfeited, as defaulting on the franchise agreement could result in the loss of this deposit. This information is crucial for assessing the financial stability and obligations of both the franchisee and Beard Papas.