Can Beef O Bradys exclude a franchisee from the site in case of default?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) to exclude you, your agents or employees from the Site;
(d) as your attorney-in-fact or in our own name, and under the powers herein granted, to hold, operate, manage and control the Family Sports Pub and conduct the business, if any, thereof, either personally or by our agents, with full power to use such measures, legally rectifiable, as we may be deemed proper or necessary to cure such default, including actions of forcible entry or detainer and actions in distress of rent, hereby granting full power and authority to us to exercise each and every of the rights, privileges and powers herein granted at any and all times hereafter;
(e) to cancel or terminate any unauthorized agreements or subleases entered into by you, for any cause or ground which would entitle us to cancel the same;
(f) to disaffirm any unauthorized agreement, sublease or subordinated lien, to make all necessary or proper repairs, decorating, renewals, replacements, alterations, additions, betterments and improvements to the Site or the Site that may seem judicious; and
(g) to insure and reinsure the same for all risks incidental to our possession, operation and management thereof; and/or
(h) notwithstanding any provision of the Franchise Agreement to the contrary, to declare all of your rights but not obligations under the Franchise Agreement to be immediately terminated as of the date of your default under the Lease.
-
- Power of Attorney: You do hereby irrevocably appoint us as your true and lawful attorney-in-fact in your name and stead and hereby authorizes us, upon any default under the Lease or under the Franchise Agreement, with or without taking possession of the Site, to rent, lease, manage and operate the Site to any person, firm or corporation upon such terms and conditions as we may determine, and with the same rights and powers and immunities, exoneration of liability and rights of recourse and indemnity as we would have upon taking possession of the Site pursuant to the provisions set forth in the Lease.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, in the event of a franchisee's default under the lease or the Franchise Agreement, Beef O Bradys has the authority to take certain actions, including excluding the franchisee from the premises. Specifically, Beef O Bradys can act as the franchisee's attorney-in-fact to manage and operate the site, with the power to take necessary measures to cure the default. This includes actions such as forcible entry or detainer.
Beef O Bradys also has the power to rent, lease, manage, and operate the site to another party under terms and conditions they determine. This can be done with or without taking possession of the site. Additionally, Beef O Bradys can cancel or terminate any unauthorized agreements or subleases entered into by the franchisee and disaffirm any unauthorized agreement, sublease, or subordinated lien.
These provisions grant Beef O Bradys significant control over the franchise location in the event of a default, allowing them to protect their brand and business interests. The franchisee essentially gives Beef O Bradys the power to take over the location and continue operations, even without the franchisee's consent, if a default occurs. This is a significant risk for franchisees, as it could lead to the loss of their business and investment if they fail to meet their obligations under the Franchise Agreement or the lease.
Prospective franchisees should carefully review these provisions and understand the circumstances under which Beef O Bradys can exercise these powers. It is advisable to seek legal counsel to fully understand the implications of these clauses and to assess the potential risks involved.