What is the daily non-compliance fee for a Beef O Bradys franchisee who deviates from System Standards?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
he Payment Day of each month for the immediately preceding month.
- 6.3 Training Fee. You must pay us a non-refundable training fee at least 90 days prior to the scheduled opening of the Family Sports Pub in consideration of our providing our initial training program and sending our representatives to the Family Sports Pub for on-site training prior to the opening of your Family Sports Pub. The training fee will vary based on the number of Family Sports Pubs you own and operate upon signing this Agreement in accordance with the following: (i) $18,000 for your first Family Sports Pub; (ii) $13,000 for your second Family Sports Pub; (iii) $11,000 for your third Family Sports Pub; (iv) $8,000 for your fourth Family Sports Pub; and (v) $7,000 for your fifth and all subsequent Family Sports Pubs.
- 6.4 Non-Compliance Fee. Any deviation from any contractual requirement, including failing to comply with System Standards, failing to honor or participate in promotional programs, closing your Family Sports Pub on unauthorized days, and any other deviation, is a violation and will require us to incur incalculable administrative and management cos
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, franchisees may be charged a non-compliance fee for any deviation from contractual requirements, including failing to comply with System Standards, failing to honor or participate in promotional programs, or closing their Family Sports Pub on unauthorized days. This fee is intended to cover the administrative and management costs Beef O Bradys incurs to address the violation, separate from any damages the violation might cause to the System, business opportunities, and goodwill associated with the Marks.
The standard non-compliance fee is $250 per day while the noncompliance is ongoing. However, this fee may be modified from time to time upon written notice to the franchisee. The fee may also vary in an amount greater than $250 per day based on the severity of the violation, the number of violations, and whether the violations have been repeated.
This means that a Beef O Bradys franchisee could face significant daily fees for failing to adhere to the System Standards or other contractual obligations. The actual amount of the fee can fluctuate based on the specifics of the non-compliance, potentially increasing the financial burden on the franchisee. It is important for prospective franchisees to understand and comply with all System Standards and contractual requirements to avoid these fees.