What does Beef O Bradys do with the Allowances they receive?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
ay be provided through additions to the Confidential Operating Manual.
Allowances. We may collect and retain certain manufacturing allowances, marketing allowances, rebates, credits, monies, payments and benefits (collectively, "Allowances") offered to us or to our affiliates by manufacturers, suppliers and distributors based upon your purchases of products and other goods and services. These Allowances are based on System-wide purchases of food, equipment, supplies, paper goods, merchandise and other items.
Allowances Received. We receive up to $13.12 per case from Sysco in connection with the sale of our wing sauces and dressings. We may also receive rebates based on purchases by Brass Tap Bar purchases of oil, mac and cheese and beer cheese. In the fiscal year ended December 31, 2024, our total revenues were $60,930,678 and we received $1,632,865 or 2.7% in rebates from purchases by Family Sports Pubs and Brass Tap Bars.
In addition to the rebates described above, on occasion we receive payments from other approved suppliers in connection with franchisee purchases, which payments are remitted to the Marketing and Development Fund. During the fiscal year ended December 31, 2024, the Marketing and Development Fund's total income was $6,610,880 and it received $318,726 or 4.8% of its total income in supplier rebates from franchisee purchases.
In addition, Sysco adds $0.65 per case to all food product cases purchased by franchisees, of which $0.27 per case is allocated to Dead Stock; which collected amounts (the "Dead Stock Allocation") Sysco then pays to the Marketing and Development Fund. Dead Stock Allocation funds are used as an appropriate dead stock need arises, such as paying for expired inventory, paying for inventory deemed obsolete, paying for left over products from limited time offerings, conducting research and development, covering quality assurance costs and handling other related inventory issues ("Dead Stock Purposes"). If the Dead Stock Allocation
exceeds expenditures for Dead Stock Purposes in any given fiscal year, the balance remains in the Marketing and Development Fund and is used for Marketing and Development Fund purposes or Dead Stuck Purposes. In the fiscal year ended December 31, 2024, we received $299,725. in Dead Stock Allocations and expended $21,129 or 7.0% on Dead Stock Purposes. In the fiscal year ended December 31, 2024, the Dead Stock Allocations not used for Dead Stock Purposes (i.e., $278,596) remained in the Marketing and Development Fu
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES. (FDD pages 22–27)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the company may collect Allowances from manufacturers, suppliers, and distributors based on franchisees' purchases of products, goods, and services. These Allowances are derived from system-wide purchases, including food, equipment, supplies, paper goods, and merchandise.
Beef O Bradys receives up to $13.12 per case from Sysco for wing sauces and dressings. They may also receive rebates from Brass Tap Bar purchases of oil, mac and cheese and beer cheese. In the fiscal year ending December 31, 2024, Beef O Bradys's total revenues were $60,930,678, and they received $1,632,865, or 2.7%, in rebates from Family Sports Pubs and Brass Tap Bars.
Additionally, Beef O Bradys receives payments from approved suppliers that are then remitted to the Marketing and Development Fund. In the fiscal year ending December 31, 2024, the Marketing and Development Fund's total income was $6,610,880, with $318,726, or 4.8%, coming from supplier rebates from franchisee purchases. Sysco also adds $0.65 per case to franchisee food product purchases, with $0.27 per case allocated to Dead Stock. These Dead Stock Allocation funds are used for purposes such as expired inventory, obsolete inventory, leftover products from limited-time offerings, research and development, quality assurance, and other related inventory issues. Any Dead Stock Allocation funds exceeding expenditures for Dead Stock Purposes remain in the Marketing and Development Fund. In the fiscal year ended December 31, 2024, Beef O Bradys received $299,725 in Dead Stock Allocations and expended $21,129, or 7.0%, on Dead Stock Purposes. The remaining $278,596 comprised 4.2% of the Marketing and Development Fund's total income.