factual

What is the effect of the termination date of the Franchise Agreement on the Beef O Bradys non-compete clause?

Beef_O_Bradys Franchise · 2025 FDD

Answer from 2025 FDD Document

d by your Family Sports Pub for the twelve (12) months immediately preceding the effective date of termination multiplied by three (3). In this regard, you acknowledge and agree that it would be impossible and impracticable to determine the precise amount of damages we will incur upon the termination of this Agreement due to the complications inherent in determining the losses and expenses we will incur. You further acknowledge and agree that this calculation of our potential damages is a reasonable, good faith estimate of such damages. If we are unable to make this calculation because of your failure to report the Gross Sales of the Family Sports Pub, we may estimate the Gross Sales of the Family Sports Pub for the applicable period based upon the historical financial information available to us at such time. The obligation to pay the amounts set forth in this paragraph will give rise to and remain, until paid in full, a lien in our favor against any and all of assets, property, furnishings, equipment, signs, fixtures and inventory owned by you or the Family Sports Pub at the time of termination and against any of your money which we are holding or which is otherwise in our possession.

17.2 Marks and De-Identification. Upon the termination or expiration of this Agreement:

  • (a) Notification. You must notify us of your intent, and the date that you intend, to discontinue business of your Beef 'O' Brady's® Family Sports Pub. You agree that such notification does not release you from any obligations or liabilities under this Agreement.
  • (b) Cease Identification as Licensee or Franchisee/Use of Marks. You may not directly or indirectly at any time or in any manner (except with respect to other Family Sports Pubs you own and operate) identify yourself or any business as a current or former Family Sports Pub, or as one of our licensees or franchisees, use any Mark, any colorable imitation of a Mark or other indicia of a Family Sports Pub in any manner or for any purpose or utilize for any purpose any trade name, trade or service mark or other commercial symbol that indicates or suggests a connection or association with us. Within ten (10) days of termination or expiration you are to deliver to us, at your own expense, all signs, sign-faces, signcabinets, marketing materials, forms and other materials containing any Mark or otherwise identifying or

relating to a Beef 'O' Brady's® Family Sports Pub. In our sole judgment, we may waive this requirement in writing provided that you provide a sworn Certificate of Destruction/De-identification detailing your compliance with these terms;

  • (c) Cancel Fictitious Business Names. You agree to take such action as may be required to cancel all fictitious or assumed name or equivalent registrations or licenses (including without limitation, any alcohol, city/state and health department licenses) relating to your use of any Mark and to provide us with a copy of business/fictitious name change documentation from the governing municipality within 15 days of the effective date of the termination/expiration of this Agreement;
  • (d) Return of Signage. If we do not have or do not exercise an option to purchase the Family Sports Pub, you agree to deliver to us within 10 days after, as applicable, the effective date of expiration/termination of this Agreement or the Notification Date all signs, sign-faces, sign-cabinets, marketing materials, forms and other materials containing any Mark or otherwise identifying or relating to a Family Sports Pub and allow us, without liability to you or third parties, to remove all such items from the Family Sports Pub;
  • (e) De-Identification of Family Sports Pub. If we do not have or do not exercise an option to purchase the Family Sports Pub, you agree that, after, as applicable, the effective date of expiration/terminations of this Agreement or the Notification Date, you will promptly and at your own expense make such alterations we specify to distinguish the Family Sports Pub clearly from its former appearance and from other Family Sports Pubs so as to prevent confusion by the public, including, without limitation, removing all exterior and interior signage bearing the Beef 'O' Brady's® name or logo including channel letter signage, pylon signage, interior signage and window decals; removing all furnishings bearing the Beef 'O' Brady's® name or logo; removing all memorabilia and décor items including pictures, jerseys, pennants, sporting good equipment, uniforms, plaques, etc. bearing inscriptions, engraving, autographs or any notation of any type that includes the Beef 'O' Brady's® name or logo;

Source: Item 23 — RECEIPTS. (FDD pages 66–330)

What This Means (2025 FDD)

According to Beef O Bradys's 2025 Franchise Disclosure Document, the termination or expiration date of the Franchise Agreement triggers several post-termination obligations for the franchisee, primarily centered around de-identification and non-competition. Upon termination or expiration, the franchisee must notify Beef O Bradys of their intent to discontinue the business and the intended date. This notification does not release the franchisee from any existing obligations or liabilities under the Franchise Agreement.

Following termination or expiration, the franchisee is prohibited from identifying themselves or their business as a current or former Beef O Bradys franchisee, or using any of Beef O Bradys's trademarks or similar identifying marks. Within ten days of termination or expiration, the franchisee must deliver all signs, marketing materials, and other items bearing Beef O Bradys's marks to the franchisor. Beef O Bradys may waive this requirement if the franchisee provides a certified statement of destruction and de-identification. The franchisee must also cancel any fictitious business names or equivalent registrations related to the use of Beef O Bradys's marks and provide documentation of this cancellation to the franchisor within 15 days of the termination or expiration date.

Furthermore, if Beef O Bradys does not exercise its option to purchase the Family Sports Pub, the franchisee must make alterations to distinguish the location from its former appearance and from other Beef O Bradys locations to prevent public confusion. This includes removing all interior and exterior signage and logos, furnishings, memorabilia, and branded food items. The franchisee must also repaint the interior, remove TVs to a limited number, and remove any Beef O Bradys concepts or menu items, ensuring that at least 51% of the new menu differs from the Beef O Bradys menu. These measures ensure a clear separation between the former franchise and any subsequent business operating at the same location, protecting Beef O Bradys's brand and preventing unfair competition.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.