What is the 'Development Fee' for a Beef O Bradys franchise, and how is it calculated?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
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4. DEVELOPMENT FEE.
- 4.1 Amount and Consideration. When you sign this Agreement, you agree to pay to us a development fee (the "Development Fee") and to abide by the Development Schedule set forth in Section 3.3(b). The Development Fee is not refundable under any circumstance. The Development Fee you must pay will be equal to half the Franchise Fees afforded to you multiplied by the number of Family Sports Pubs you agree to develop. By way of example, if you are required to develop five Family Sports Pubs under the Development Schedule, the Development Fee will be $31,500 ($12,500 + $8,500 + $5,000 + $3,500 + $2,000). 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.
- Franchise Fees. In connection with your having entered into this Agreement with us, you are entitled to pay us reduced Franchise Fees starting with the second Family Sports Pub you agree to develop. The reduction in the Franchise Fee will be determined in accordance with the following schedule: (i) $25,000 for the first Family Sports Pub; (ii) $17,000 for the second Family Sports Pub; (iii) $10,000 for the third Family Sports Pub; (iv) $7,000 for the fourth Family Sports Pub; and, (v) $4,000 for the fifth and all subsequent Family Sports Pubs to be developed under this Agreement. This payment schedule will repeat for each subsequent set of five Family Sports Pubs you agree to develop. For each Family Sports Pub developed under this Agreement, you are required to pay us half of the Franchise Fee as part of the Development Fee, as described in Section 4.1, and the other half of the Franchise Fee immediately upon executing the Franchise Agreement for each such Family Sports Pub. The Franchise Fees are non-refundable and are fully earned by us on receipt. By way of example, if you are required to develop five Family Sports Pubs under the Development Schedule then upon entering into your first Franchise Agreement you must pay us a Franchise Fee of $12,5
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, the Development Fee is a fee that a franchisee must pay when signing the Development Agreement. The amount of this fee depends on the number of Family Sports Pubs the franchisee agrees to develop within a specific Development Area.
The Development Fee is calculated based on a decreasing scale for each subsequent Family Sports Pub the franchisee commits to developing. For instance, if a franchisee agrees to develop five Family Sports Pubs, the Development Fee is calculated as follows: $25,000 for the first pub, $17,000 for the second, $10,000 for the third, $7,000 for the fourth, and $4,000 for the fifth. In this example, the total Development Fee would be $31,500 ($12,500 + $8,500 + $5,000 + $3,500 + $2,000).
Furthermore, the franchisee is required to pay half of the Franchise Fee as part of the Development Fee, as outlined in Section 4.1 of the agreement. The remaining half of the Franchise Fee is due immediately upon executing the Franchise Agreement for each respective Family Sports Pub. This payment schedule repeats for each subsequent set of five Family Sports Pubs the franchisee agrees to develop. This structure incentivizes multi-unit development by reducing fees for each additional location committed to upfront.