Beard Papa's Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$45,000
Investment required
$201,000 – $477,000
Royalty fee
5.00%

Beard Papa's: Crafting the World's Finest Cream Puffs

Established in Osaka, Japan, in 1999, Beard Papa's began as a humble bakery with a mission to create the world's best cream puffs. The brand's commitment to quality and freshness quickly garnered international acclaim, leading to an expansion that now includes over 475 stores across 15 countries and territories.

Beard Papa's specializes in customizable cream puffs, allowing customers to select from a variety of shells—such as original, chocolate éclair, and green tea éclair—and pair them with diverse custard fillings, including traditional vanilla bean and seasonal flavors. This dedication to offering freshly baked, high-quality pastries has set Beard Papa's apart in the competitive dessert market.

The franchise began its global expansion shortly after its founding, with the first international locations opening in the early 2000s. Today, Beard Papa's continues to grow, with 43 locations in the United States, providing franchisees with a low-cost, high-reward opportunity.

By focusing on product quality, customer experience, and innovative flavor offerings, Beard Papa's has distinguished itself as a leader in the dessert franchise industry, delighting customers worldwide with its signature cream puffs.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $45,000
Construction and Leasehold Improvements $35,000 – $150,000
Lease Deposits and Rent – Three Months $18,000 – $96,000
Ovens $15,000 – $35,000
Custard Cream Equipment $30,000 – $35,000
Furniture, Fixtures and Other Equipment $20,400 – $40,000
Signage $4,000 – $8,000
Computer, Software, and Point of Sale System $700 – $1,500
Grand Opening Marketing $6,000
Initial Inventory $4,300 – $10,000
Utility Deposits $500
Insurance Deposits – Three Months $500 – $4,000
Initial Training Fee $5,000
Professional Fees $6,000 – $9,500
Licenses and Permits $500 – $1,500
Additional Funds – Three Months $10,000 – $30,000
Total Estimate $200,900 – $477,000

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Number of units

2024
Franchised units

32

43

40

Company-owned units

1

0

0

Total units

33

43

40

Franchise Disclosure Document

Training

Beard Papa's Franchisor provides the following training programs for franchisees:

  1. Initial Training Program: This program is mandatory for the Managing Owner and two designated managers of the franchise. The training typically spans five days and includes both classroom and on-the-job instruction. It must be completed to the franchisor's satisfaction before the opening of the shop. Additional attendees incur extra fees.
  2. System-Wide Training Program: After the shop's opening, franchisees may be required to attend system-wide training programs. These programs are designed to ensure consistency and adherence to operational standards. They are conducted at select locations, and attendees are responsible for their travel and related expenses.
  3. Supplemental Training: Offered upon request or as required by the franchisor, this training may occur at the franchise location or remotely via online conferencing. The franchisor charges fees for this program, which includes daily trainer rates and potential reimbursement of travel costs.
  4. Refresher Training Courses: These courses are periodically required to maintain operational standards and may involve system updates or new procedures. The franchisor provides materials but may charge reasonable fees for participation.
  5. Employee Training Responsibility: Franchisees are responsible for ongoing training of their employees in line with the franchisor's standards and specifications.

Territory Protection

Beard Papa’s does not offer exclusive territory protection to its franchisees. Franchisees may face competition from other franchisees, corporate-owned outlets, and other channels of distribution controlled by the franchisor. While the franchisor establishes a “Designated Territory” for each franchise, this does not grant territorial exclusivity or prevent the franchisor from operating or licensing other outlets within the area.

The franchise agreement allows Beard Papa’s to distribute its products through various means, including wholesale, retail, and online platforms, potentially within the designated territories of franchisees. Franchisees are restricted to marketing and selling within their designated territories and may not deliver or cater outside of these areas.

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