Is the Development Fee for a Beef O Bradys franchise refundable under any circumstances?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
t are not yet open; or
- (d) Reduction of Rights. Reduce the Development Area and the Development Schedule to a size and magnitude that we estimate you are capable of operating otherwise in accordance with this Agreement.
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 D
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the Development Fee is not refundable under any circumstances. The Development Fee compensates Beef O Bradys for granting the developer the rights to develop Family Sports Pubs within a specific Development Area, according to a set Development Schedule.
The Development Fee is calculated as half of the total Franchise Fees for all the Family Sports Pubs the developer agrees to open. For example, if a developer commits to opening five Family Sports Pubs, the Development Fee would be $31,500, calculated as $12,500 + $8,500 + $5,000 + $3,500 + $2,000. The franchise fees are reduced for subsequent locations, with the first Family Sports Pub costing $25,000, the second $17,000, the third $10,000, the fourth $7,000, and the fifth and subsequent pubs costing $4,000.
After paying the non-refundable Development Fee, the developer must pay the remaining half of the applicable reduced Franchise Fee upon entering into each individual Franchise Agreement for each Family Sports Pub. The Franchise Fees themselves are also non-refundable and are considered fully earned by Beef O Bradys upon receipt. This means that a prospective Beef O Bradys developer should be certain of their ability to fulfill the Development Schedule before paying the Development Fee, as failure to meet the schedule can result in termination of the agreement.