What is the daily Non-Compliance Fee for a Beef O Bradys franchise?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
portunities, and the goodwill associated with 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 non-compliance fees upon written notice to you. The noncompliance fee equals $250 per day while the non-compliance 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 a
Source: Item 6 — OTHER FEES. (FDD pages 12–19)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, a franchisee may incur a Non-Compliance Fee of $250 per day for failing to comply with any contractual requirement or System Standards. This fee serves to compensate Beef O Bradys for the administrative and management costs they incur as a result of the franchisee's violation. The fee is charged upon written notice and continues to be applied daily for as long as the non-compliance persists.
It's important to note that the Non-Compliance Fee is in addition to any other remedies that Beef O Bradys may be entitled to under the franchise agreement. Furthermore, the amount of the fee may be greater than $250 per day, depending on the severity and number of violations, as well as whether the violations have been repeated. This means that a franchisee could face significantly higher fees for serious or repeated instances of non-compliance.
This fee is not unique to Beef O Bradys, as many franchise systems include non-compliance fees to ensure franchisees adhere to brand standards and contractual obligations. Prospective franchisees should carefully review the franchise agreement and System Standards to understand what constitutes non-compliance and the potential financial consequences.