Who is considered an 'Owner' in the context of a Beef O Bradys franchise agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
en evaluated through April 29, 2024, which is the date the consolidated financial statements were available to be issued.
Notes to Consolidated Financial Statements December 31, 2023 and 2022
3. Revenue Recognition
Disaggregation of Revenue
Revenues disaggregated by timing of revenue recognition consist of the following for the years ended December 31:
| TERM | DEFINITION |
|---|---|
| Owner Section 19.16 | Any person holding a direct or indirect, legal or beneficial ownership interests or voting rights in another person (or a transferee of this Agreement or an interest in you), and the o |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, an 'Owner' is defined broadly within the context of the franchise agreement. This definition extends beyond just direct ownership to include those with indirect interests or control. Specifically, it encompasses any individual or entity holding a direct or indirect, legal or beneficial ownership interest or voting rights in another person involved with the franchise agreement.
This definition also includes officers, directors, partners, members, or holders of a beneficial interest in any person who has 5% or more of a direct or indirect beneficial interest in you or the agreement. This means that even if someone doesn't directly own a significant portion of the franchise, their stake in an entity that does could classify them as an 'Owner'.
Furthermore, the definition includes any person who has any other legal or equitable interest, or the power to vest in himself any legal or equitable interest, in the revenue, profits, rights, or assets of the franchise. This all-encompassing definition ensures that Beef O Bradys can identify and monitor all individuals with a significant stake or influence in the franchise, which is crucial for maintaining brand standards and managing potential conflicts of interest. For a prospective franchisee, this means carefully disclosing all ownership interests, no matter how small or indirect, to ensure compliance with the franchise agreement.