What were the advertising expenses for Beef O Bradys for the year ended December 31, 2024?

According to Beef O Bradys's 2025 Franchise Disclosure Document, the franchise marketing and advertising fees for the Beef 'O' Brady's Fund were $1,119,000 for the year 2024. In 2023, these fees were $1,096,000. Additionally, the franchise marketing and advertising fees for the Brass Tap Fund were $21,000 in 2024, compared to $27,000 in 2023. These figures reflect the direct costs associated with marketing and advertising efforts managed through the respective funds.

These funds are used for promotion, public relations, merchandising, product research and development, advertising campaigns, and geographically designed programs. Both company-owned stores and franchises contribute to these funds, with Beef 'O' Brady's locations paying 2.3% of net sales and Brass Tap locations paying 1.5% of net sales monthly. The funds also handle gift cards sold at the restaurants.

The franchisor also charges the marketing and development funds for expenses like office space, equipment rental, and administrative salaries. These charges are accounted for as a reduction of operating expenses in the company's consolidated statements. Conversely, the funds charge the company and company-owned stores for marketing and advertising services, creating a financial relationship between the company and its marketing funds.

Prospective franchisees should understand how these marketing funds are managed and how they benefit from the advertising and promotional activities. It is important to review the performance of these funds and the specific marketing strategies employed to ensure they align with the franchisee's business goals. Understanding the allocation of these funds and their impact on brand awareness and customer traffic is crucial for assessing the value of the franchise.