What is the definition of 'Protected Territory' in relation to the Beef O Bradys non-compete agreement?

According to Beef O Bradys' 2025 Franchise Disclosure Document, the Protected Territory is defined as the geographic area within a 3-mile radius of the front door of the Restaurant. This definition is crucial for prospective franchisees as it outlines the exclusive area where they can operate without direct competition from other Beef O Bradys franchises.

However, the FDD also indicates that Beef O Bradys retains significant rights that could impact a franchisee's protected territory. Specifically, Beef O Bradys can establish franchises outside the protected territory, even immediately proximate to its border. They can also operate or franchise other businesses, except for Family Sports Pubs, within the Protected Territory. Furthermore, Beef O Bradys can market and sell goods and services competitive with those of Family Sports Pubs through various channels of distribution, such as internet sales or retail stores, both inside and outside the Protected Territory.

These provisions mean that while a franchisee has a defined area free from other Beef O Bradys restaurants, the franchisor can still engage in activities that might draw customers away. The franchisee's protection is limited to the physical presence of another Beef O Bradys location within that 3-mile radius. A prospective franchisee should carefully consider these limitations and evaluate the potential impact of these competitive activities on their restaurant's performance. Understanding the scope and limitations of the protected territory is essential for assessing the overall viability and potential profitability of a Beef O Bradys franchise.