When is the early termination fee due for a Beef O Bradys franchise?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement, you will be |
| (1) Type of Fee | (2) Amount | (3) Due Date | (4) Remarks* required to pay us a fee of $10,000. |
|---|---|---|---|
| Early Termination Fee | An amount equal to the greater of (a) $100,000 or (b) the aggregated Royalties and Marketing Contributions paid by your Family Sports Pub for the twelve (12) months immediately preceding the effective date of termination multiplied by three (3). | Within fifteen (15) days of termination. | In the event the agreement is terminated before expiration of the Term, to account for the actual damages that we shall suffer as a result of the termi |
Source: Item 6 — OTHER FEES. (FDD pages 12–19)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, if a franchisee terminates the franchise agreement before its expiration, they must pay an early termination fee within fifteen days of termination. The fee is the greater of $100,000 or three times the aggregated Royalties and Marketing Contributions paid by the Family Sports Pub for the twelve months immediately preceding the termination date.
This early termination fee is designed to compensate Beef O Bradys for the damages they incur as a result of the early termination. It covers losses associated with the franchisee no longer operating the business and the potential disruption to the Beef O Bradys system.
Prospective franchisees should carefully consider the implications of this early termination fee. It represents a significant financial obligation that could arise if the franchisee decides to exit the Beef O Bradys system before the franchise agreement's term expires. Franchisees should evaluate their financial capacity to cover this fee in the event of unforeseen circumstances or business challenges.