Beard Papa’s Franchise FDD, Profits, Costs & Fees (2024)
Beard Papa’s is a global bakery franchise known for its freshly baked cream puffs. These treats are loved for their crispy shells and variety of flavorful fillings.
The brand started in 1999 in Osaka, Japan, and is celebrated for its quality and innovation. Its headquarters is in Cerritos, California.
The franchise began expanding in 2004 through franchising. Beard Papa’s specializes in customizable cream puffs with different shells and fillings. This focus on freshness and personalization makes it stand out in the dessert industry.
Currently, Beard Papa’s has grown to over 480 stores in 15 countries. It has a strong presence in the U.S. and offers franchise opportunities to expand further. The brand continues to delight customers and attract new franchisees.
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Initial Investment
How much does it cost to start a Beard Papa’s franchise? It costs on average between $164,000 – $477,000 to start a Beard Papa’s franchised shop.
This investment encompasses expenses such as construction, equipment, inventory, and initial operating costs. The exact amount depends on various factors, including the type of shop (stand-alone or kiosk), location, and whether the franchisee opts to lease or purchase the property.
| 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 |
Average Revenue (AUV)
How much revenue can you make with a Beard Papa’s franchise? A Beard Papa’s franchised bakery makes on average $235,000 in revenue (AUV) per year.
This compares to $815,000 yearly revenue for similar baked goods franchises.
Below are a few competitors in comparison:
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Franchise Disclosure Document
Frequently Asked Questions
How many Beard Papa’s locations are there?
As of the latest data, Beard Papa’s operates over 480 stores across 15 countries and territories. In the United States, the franchise has expanded to 32 locations, with 27 of these being franchised units and the remaining 5 company-owned. This distribution reflects the brand’s strategic growth through both corporate and franchise partnerships.
What is the total investment required to open a Beard Papa’s franchise?
The total investment required to open a Beard Papa’s franchise ranges from $164,000 to $477,000.
What are the ongoing fees for a Beard Papa’s franchise?
Beard Papa’s franchisees are required to pay a royalty fee of 5% of monthly gross sales, which contributes to the franchisor’s continued support and development of the franchise system.
Additionally, franchisees are required to pay a marketing fee of 2% of their monthly sales, allocated towards national and regional advertising campaigns designed to enhance brand recognition and drive customer traffic.
What are the financial requirements to become a Beard Papa’s franchisee?
To become a Beard Papa’s franchisee, candidates are typically required to have a minimum net worth of $300,000 and liquid capital ranging between $50,000 and $100,000. These financial prerequisites ensure that franchisees possess the necessary resources to support the initial investment and sustain operations during the startup phase.
How much can a Beard Papa’s franchise owner expect to earn?
The average gross sales for a Beard Papa’s franchise are approximately $0.24 million per location. Assuming a 15% operating profit margin, $0.24 million yearly revenue can result in $36,000 EBITDA annually.
Who owns Beard Papa’s?
Beard Papa’s is owned by Muginoho Co., Ltd., a Japanese company that operates various sweet shops across Japan. The franchise was founded in 1999 by Yuji Hirota in Osaka, Japan, and has since expanded internationally, including a significant presence in the United States.
Disclaimer
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