What is the Development Fee for a Beef O Bradys franchise, and under what circumstances is it refundable?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
able extension fee equal to the balance of the Franchise Fees for the number of Family Sports Pubs that are to be opened and operated under the Development Schedule but 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 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
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, a Development Fee is required when signing a Development Agreement, and the amount depends on the number of Family Sports Pubs the franchisee agrees to develop. The Development Fee is equal to half of the total franchise fees for all locations to be developed. For example, if a franchisee agrees to develop five Family Sports Pubs, the Development Fee will be $31,500, calculated as $12,500 + $8,500 + $5,000 + $3,500 + $2,000. After paying the Development Fee, the remaining half of the franchise fee is due upon entering into each individual Franchise Agreement.
Specifically, the franchise fees are: $25,000 for the first Family Sports Pub; $17,000 for the second; $10,000 for the third; $7,000 for the fourth; and $4,000 for the fifth and all subsequent pubs. This payment schedule repeats for each subsequent set of five Family Sports Pubs the franchisee agrees to develop. For each Family Sports Pub developed, half of the franchise fee is included in the Development Fee, with the other half due upon executing the Franchise Agreement for that location.
It is important to note that the Development Fee is non-refundable under any circumstances. This means that regardless of whether the franchisee successfully develops all of the agreed-upon locations, or if the Development Agreement is terminated, the franchisee will not receive a refund of the Development Fee. This is a significant financial risk for potential franchisees and should be carefully considered before entering into a Development Agreement with Beef O Bradys.