How is the amount transferred from the Account to pay Royalties determined for a Beef O Bradys franchise?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
The amount actually transferred from the Account to pay Royalties will be based on the Family Sports Pub's Adjusted Gross Sales as determined by us based on our review of your POS System.
Notwithstanding the foregoing, however, you must still report your Family Sports Pub's Gross Sales and Adjusted Gross Sales on a daily basis in the form and at the time that we designate in our manuals or otherwise.
If we determine at any time that you have under-stated the Gross Sales and/or Adjusted Gross Sales set forth in any such report or underpaid Royalties or other amounts due to us, we may immediately transfer to ourselves such additional amounts owed to us, including applicable interest and late charges, from the Account.
Any overpayment will be credited to the Account through a credit, effective as of the next scheduled Payment Day after you and we determine that such credit is due.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, royalty payments are handled via electronic funds transfer from the franchisee's designated bank operating account. The amount transferred to cover royalties is determined by Beef O Bradys based on their review of the franchisee's Point of Sale (POS) system data, which reflects the Family Sports Pub's Adjusted Gross Sales. This means Beef O Bradys actively monitors sales data to calculate the royalty amount.
Despite this electronic transfer system, Beef O Bradys franchisees are still required to report their Gross Sales and Adjusted Gross Sales daily, using the format and timing specified in the operating manuals. This dual reporting system ensures transparency and allows Beef O Bradys to cross-reference the data from the POS system with the franchisee's self-reported figures.
Furthermore, Beef O Bradys retains the right to immediately transfer any additional amounts owed, including interest and late charges, from the franchisee's account if they determine that the franchisee has underreported sales or underpaid royalties. Conversely, any overpayments will be credited back to the franchisee's account on the next scheduled Payment Day after the discrepancy is acknowledged by both parties. This system ensures that Beef O Bradys can quickly rectify any underpayments, while also providing a mechanism for franchisees to receive credit for overpayments.