What is the duration of the non-compete period for a Beef O Bradys franchisee after termination or expiration of their ownership participation?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
17.4 Competitive Restrictions. Upon termination or expiration of this Agreement for any reason whatsoever (and you have not acquired, a Successor Franchise), you agree that, for a period of 2 years commencing on the effective date of termination or expiration neither you nor any of your Owners will have any direct or indirect interest (including through a spouse, child or other Family Member) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, member, manager, representative or agent or in any other capacity in any Competitive Business operating:
(a) At the Site.
At the Site or within the Protected Territory;
- (b) Within 15 Miles of Site.
Within 15 miles of the Site or Protected Territory; or
- (c) Within 15 Miles of Another Family Sports Pub.
Within 15 miles of any other Family Sports Pub in operation or under construction on the later of the effective date of the termination or expiration.
If any person restricted by this Section refuses voluntarily to comply with the foregoing obligations, the 2-year period will commence with the entry of an order of an arbitrator, or court if necessary, enforcing this provision. You expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Section will not deprive you or your Owners of your or their personal goodwill or ability to earn a living. All persons with an ownership or voting interest in you if you are a Business Entity franchisee, all individual franchisees if you are not a Business Entity and any person employed by or under an independent contractor relationship with you whom receives or will receive any training by us or you which is directly or indirectly related to the System or
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, a franchisee is subject to a non-compete agreement for a period of two years following the termination or expiration of their franchise agreement. This restriction applies if the franchisee has not acquired a Successor Franchise. During this two-year period, the franchisee and their owners are prohibited from having any direct or indirect interest in a Competitive Business. This includes involvement as an owner, investor, partner, director, officer, employee, consultant, member, manager, representative, or agent.
The non-compete restrictions apply specifically to Competitive Businesses operating at the original franchise location (the Site), within the Protected Territory, within 15 miles of the Site or Protected Territory, or within 15 miles of any other Beef O Bradys location that is either in operation or under construction at the time of termination or expiration. The FDD clarifies that if someone bound by these restrictions does not voluntarily comply, the two-year period will begin when an arbitrator or court order enforces the provision.
Beef O Bradys emphasizes that franchisees possess general skills and abilities and have other opportunities to earn a living. Therefore, the franchisor believes that enforcing these non-compete agreements will not deprive franchisees or their owners of their personal goodwill or ability to earn a living. This clause applies to all individuals with an ownership or voting interest in the franchise, individual franchisees, and any person employed by or under an independent contractor relationship with the franchisee who receives training related to the Beef O Bradys system.