How is the Beef O Bradys Development Fee calculated?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
nted Franchise Fee for veterans at any time.
Area Development Fee. If you are qualified to serve as an area developer, and enter into an Area Development Agreement with us, you are required to develop at minimum 2 Family Sports Pubs, and you must pay us an initial development fee (the "Development Fee") upon signing the Area Development Agreement and agree to abide by a specified Development Schedule. The Development Fee is not refundable under any circumstance. The Development Fee is half of the Franchise Fees afforded to area developers multiplied by the number of Family Sports Pubs you agree to develop. The Franchise Fees afforded to area developers are as follows: (i) $12,500 for the first Family Sports Pub; (ii) $8,500 for the second Family Sports Pub; (iii) $5,000 for the third Family Sports Pub; (iv) $3,500 for the fourth Family Sports Pub; and, (v) $2,000 for the fifth and all subsequent Family Sports Pubs to be developed under the Area Development Agreement. After paying the Development Fee, upon entering into each respective Franchise Agreement for the Family Sports Pubs you agree to develop, you must pay us the remaining half of the applicable reduced Franchise Fee.
By way of example, if you are an area developer who will develop 2 Family Sports Pubs, the Development Fee will be $21,000 [$12,500 + $8,500]. If you are an area developer who will develop 5 Family Sports Pubs, the Development Fee will be $31,500 [$12,500 + $8,500 + $5,000 + $3,500 +$2,000]. Then, upon entering into your first Franchise Agreement, you must pay us the remaining $12,500 portion of the Franchise Fee; upon entering into your second Franchise Agreement, you must pay the remaining $8,500 portion of the Franchise Fee; upon entering into your third Franchise Agreement, you must pay the remaining $5,000 portion of the Franchise Fee; upon entering into your fourth Franchise Agreement, you must pay us the remaining $3,500 portion of the Franchise Fee; and, upon entering into your fifth Franchise Agreement, you must pay us th
Source: Item 5 — INITIAL FEES. (FDD pages 10–12)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the Development Fee is required if you are qualified to serve as an area developer and enter into an Area Development Agreement. This fee is calculated as half of the total Franchise Fees for the number of Family Sports Pubs you commit to develop. The Development Fee is paid upon signing the Area Development Agreement and is non-refundable under any circumstances.
The franchise fees for area developers decrease with each additional location. The first Family Sports Pub carries a franchise fee of $12,500, the second is $8,500, the third is $5,000, the fourth is $3,500, and the fifth and all subsequent pubs are $2,000 each. For example, if an area developer commits to developing two Family Sports Pubs, the Development Fee would be $21,000 ($12,500 + $8,500). If an area developer commits to developing five Family Sports Pubs, the Development Fee would be $31,500 ($12,500 + $8,500 + $5,000 + $3,500 + $2,000).
After paying the Development Fee, the remaining half of the reduced Franchise Fee is due upon entering into each respective Franchise Agreement for the Family Sports Pubs. For instance, after paying the initial Development Fee for two pubs, the franchisee would pay $12,500 upon signing the first Franchise Agreement and $8,500 upon signing the second Franchise Agreement.