According to the Beef O Bradys FDD, what constitutes an 'Owner'?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
en evaluated through April 29, 2024, which is the date the consolidated financial statements were available to be issued.
Notes to Consolidated Financial Statements December 31, 2023 and 2022
3. Revenue Recognition
Disaggregation of Revenue
Revenues disaggregated by timing of revenue recognition consist of the following for the years ended December 31:
| TERM | DEFINITION |
|---|---|
| Owner Section 19.16 | Any person holding a direct or indirect, legal or beneficial ownership interests or voting rights in another person (or a transferee of this Agreement or an interest in you), and the o |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys FDD, an 'Owner' is defined broadly to include anyone with a financial stake or control over the franchise. This encompasses individuals or entities holding direct or indirect ownership interests, legal or beneficial ownership interests, or voting rights in another person or a transferee of the Franchise Agreement.
Specifically, the definition extends to officers, directors, partners, members, or holders of a beneficial interest in any person who has 5% or more of a direct or indirect beneficial interest in the franchisee or the Franchise Agreement. This means that even a relatively small ownership stake (5% or more) can classify someone as an 'Owner' under the terms of the agreement.
Furthermore, the definition includes any person who has any other legal or equitable interest, or the power to vest in himself any legal or equitable interest, in the revenue, profits, rights, or assets of the franchise. This catch-all provision ensures that anyone who could potentially benefit financially from the Beef O Bradys franchise or exert control over its assets is considered an 'Owner'. This comprehensive definition is important because various obligations and restrictions within the Franchise Agreement may apply to 'Owners'.