What authorization is required for electronic funds transfer payments to Beef O Bradys?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
the Marks). Therefore, if you fail to comply with any of the System Standards or any provision of any agreement between us, in addition to any other remedies we may be entitled to, we reserve the right to charge you one or more noncompliance fees upon written notice to you. The non-compliance fee equals $250 per day while the noncompliance is ongoing, may be modified from time to time upon written notice to you, may be charged daily if the non-compliance is ongoing, and may vary in an amount greater than $250 per day based on the severity of the violation, the number of the violations, and whether the violations have been repeated. The non-compliance fee will be used to compensate us for our incalculable administrative and management costs due to your violations.
- 6.5 Electronic Funds Transfer and Payment Procedure. We require you to pay all payments of the Royalties or any other amounts due us under this Agreement to us by electronic funds transfer. We will designate the day of each week or month (the "Payment Day") for the Royalty payment or payment of other amounts due us under this Agreement. We may designate different Payment Days for different amounts due us under this Agreement (e.g. Royalty, Marketing Contributions, etc.). You agree to comply with the procedures we specify in our Confidential Operating Manuals and perform such acts and sign and deliver such documents as may be necessary to accomplish payment by this method.
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 required to make all royalty and other payments to Beef O Bradys via electronic funds transfer. To facilitate this, the franchisee must provide authorization to Beef O Bradys to initiate debit or credit correction entries to the Family Sports Pub's bank operating account. This authorization must be in a form designated by Beef O Bradys.
This means that as a Beef O Bradys franchisee, you will need to sign documents giving Beef O Bradys the ability to directly debit your designated bank account for royalties, marketing contributions, and any other amounts owed under the Franchise Agreement. You are also responsible for ensuring that sufficient funds are available in the account on the designated Payment Day for Beef O Bradys to withdraw the necessary amounts.
Furthermore, Beef O Bradys will determine the Adjusted Gross Sales of the Family Sports Pub based on their review of the POS system, which will be the basis for royalty calculations. If Beef O Bradys determines that the franchisee has underreported Gross Sales or Adjusted Gross Sales, they reserve the right to immediately transfer any additional amounts owed, including interest and late charges, from the franchisee's bank account. Any overpayment will be credited back to the account on the next scheduled Payment Day.