Who is considered a 'Restricted Person' in the context of a Beef O Bradys franchise agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TERM | DEFINITION |
|---|---|
| Restricted Person | You or any of your Owners if you are a Business Entity. |
| Section 7.3(a) |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, a 'Restricted Person' is defined as the franchisee ('you') or any of the franchisee's owners if the franchisee is a business entity. This definition is important because it identifies who is subject to certain restrictions outlined in the franchise agreement, particularly those related to non-competition and non-solicitation.
Specifically, during the term of the franchise agreement, neither the franchisee nor their owners (if the franchisee is a business entity) can engage in a Competitive Business, perform services for a Competitive Business, or have any direct or indirect interest in a Competitive Business, except under a franchise agreement with Beef O Bradys or its affiliates. A Competitive Business is defined as any business or facility that owns, operates, or manages a bar, sports pub, restaurant, food service facility, or other business that features menu items, products, and/or services similar to those offered by Beef O Bradys.
This restriction extends to preventing these individuals from having any interest in an entity that grants franchises or licenses to others to operate a Competitive Business. Additionally, Restricted Persons are prohibited from recruiting employees away from Beef O Bradys. These restrictions are in place to protect Beef O Bradys' confidential information, maintain a free exchange of ideas among franchisees, and ensure the franchisee's exclusive dedication to the Beef O Bradys system during the agreement term.