Does the Beef O Bradys definition of 'Alcohol Restriction Law' only apply to state laws?

According to the 2025 Beef O Bradys Franchise Disclosure Document, the definition of 'Alcohol Restriction Law' includes both state and local laws. This definition is important because it directly impacts how royalties and marketing contributions are calculated and collected from franchisees.

Specifically, an 'Alcohol Restriction Law' is defined as a state or local law that prohibits or restricts Beef O Bradys' or the franchisee's ability to collect royalties, marketing contributions, or other amounts derived from the sale of alcoholic beverages. This means that if either a state or local law restricts the collection of these amounts from alcohol sales, it falls under this definition.

For a prospective Beef O Bradys franchisee, this definition is crucial because it affects the Adjusted Gross Sales calculation. Adjusted Gross Sales are Gross Sales less certain deductions, including sums collected and actually paid by the franchisee for any sales, drink, or other excise tax imposed by a governmental authority on alcoholic beverage sales in a state that prohibits the payment of royalties on such sales. Therefore, understanding both state and local alcohol restriction laws is essential for accurately calculating royalties and other payments to Beef O Bradys.