Does the Beef O Bradys agreement allow for modification to comply with applicable law?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
You are obligated to comply with all modifications to System Standards, including Capital Modifications, within the time period we specify.
In no event will we require you to spend in any 12-month period in excess of 25% of the total high-end Item 7 expenditure estimates set forth in this Disclosure Document for "Equipment," "Furniture, Fixtures & Millwork," "Audio and Video Equipment," "Leasehold Improvements," and "Signage", combined, from our Franchise Disclosure Document during the term of this Agreement in connection with Capital Modifications.
- 11.4 Interior and Exterior Upkeep.
You agree at all times to maintain the Family Sports Pub's interior and exterior and the surrounding area in the highest degree of cleanliness, orderliness and sanitation and comply with the requirements regarding the upkeep of the Family Sports Pub established in the Manuals and by federal, state and local laws.
- 8.5 Signage. Signage must comply with all state and local laws and ordinances.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, franchisees are obligated to comply with modifications to system standards, including capital modifications, within a specified time period. These modifications may require additional capital investment or higher operating costs but will not alter the franchisee's fundamental rights under the agreement. Beef O Bradys will not require capital modifications if the investment cannot be amortized during the remaining term and successor periods, unless they agree to extend the franchise term or if the investment is necessary to comply with applicable laws.
Beef O Bradys provides franchisees with a compliance period of up to 90 days for capital modifications. However, if a capital modification requires an expenditure exceeding $20,000, the compliance period extends to 180 days from the request date. There is also a limit to how much Beef O Bradys can require a franchisee to spend on capital modifications within a 12-month period, which is capped at 25% of the total high-end Item 7 expenditure estimates for specific categories like equipment, furniture, and signage.
Furthermore, franchisees must maintain the Family Sports Pub's interior and exterior in accordance with federal, state, and local laws. Signage must also comply with all state and local laws and ordinances. This indicates that the Beef O Bradys franchise agreement takes into account the necessity of adhering to applicable laws and regulations, and the agreement includes provisions for modifications to ensure compliance.