What was the amount deducted from Beef O Bradys' 2022 receipts, as indicated in the table?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
who perform work for the Funds; such amounts are included as a reduction of operating expenses in the accompanying consolidated statements of operations. The Funds charge the Company and company-owned stores for marketing and advertising.
The following table summarizes the approximate amounts charged to the Company by the Funds and charged to the Funds by the Company for the years ending December
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, the company administers both the Beef 'O' Brady's Marketing and Development Fund and the Brass Tap Marketing and Development Fund. These funds are used for promotional activities, public relations, product research and development, advertising, and geographically designed programs to promote both Beef 'O' Brady's and Brass Tap restaurants. The funds also handle gift cards sold at the restaurants. Franchisees and company-owned stores contribute to these funds through monthly fees based on a percentage of net sales (2.3% for the Beef 'O' Brady's fund and 1.5% for the Brass Tap Fund).
The document states that the company charges these funds for office space, equipment rental, and a portion of administrative salaries related to employees working for the funds. These charges are reflected as a reduction of operating expenses in the company's consolidated statements of operations. Conversely, the funds charge the company and company-owned stores for marketing and advertising expenses.
For the Beef 'O' Brady's fund, the franchise marketing and advertising fees were $949,000 in 2022, while salaries and overhead charges were $25,000. For the Brass Tap Fund, franchise marketing and advertising fees were $33,000, and salaries and overhead charges were $25,000 in 2022. These figures provide insight into the financial interactions between Beef O Bradys and its marketing and development funds, which are crucial for brand promotion and support.