What earnest money deposit is required from a purchaser for a Beef O Bradys franchise transfer?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.8 Our Right of First Refusal. If you (or any of your Owners) at any time determine to sell, assign or Transfer for consideration an interest in your the Family Sports Pub(s) or an ownership interest in you, you (or such Owner) agree to obtain a bona fide, executed written offer and earnest money deposit (in the amount of 5% or more of the offering price) from a responsible and fully disclosed offeror (including lists of the owners of record and all beneficial owners of any corporate or limited liability company offeror and all general and limited partners of any partnership offeror) and immediately submit to us a true and complete copy of such offer, which includes details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price. To be a valid, bona fide offer, the proposed purchase price must be denominated in a dollar amount. The offer must apply only to an interest in the Family Sports Pub and may not include an offer to purchase any of your (or your Owners') other property or rights. However, if the offeror proposes to buy any other property or rights from you (or your Owners) under a separate, contemporaneous offer, such separate, contemporaneous offer must be disclosed to us, and the price and terms of purchase offered to you (or your Owners) for the interest in you or the Family Sports Pub must reflect the bona fide price offered and not reflect any value for any other property or rights.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, if a franchisee decides to transfer their Family Sports Pub or any ownership interest, they must obtain a bona fide, executed written offer along with an earnest money deposit from a responsible offeror. This earnest money deposit must be 5% or more of the offering price. The offeror must be fully disclosed, including lists of owners of record and all beneficial owners if the offeror is a corporate or limited liability company, and all general and limited partners if the offeror is a partnership.
The offer submitted to Beef O Bradys must be a true and complete copy, detailing the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price. To be considered valid, the proposed purchase price must be denominated in a dollar amount and apply only to the interest in the Family Sports Pub, excluding any other property or rights of the franchisee. If the offeror proposes to buy other property or rights under a separate offer, this must be disclosed, ensuring the price for the franchise interest reflects its bona fide value.
Beef O Bradys retains the right of first refusal, allowing them to purchase the franchisee's interest for the same price and terms as the offer, provided they notify the franchisee within 30 days of receiving the offer and all requested information. This ensures that Beef O Bradys has the opportunity to maintain control over its franchise locations and the quality of its franchisees.