What does the Beef O Bradys FDD define as the 'Marketing Development Fund'?

According to Beef O Bradys' 2025 Franchise Disclosure Document, the Marketing Development Fund is defined as a system-wide fund established for advertising, marketing, and public relations programs and materials deemed necessary or appropriate by Beef O Bradys. Franchisees are currently required to contribute 2.3% of monthly Adjusted Gross Sales to the Marketing Development Fund, but this contribution may increase to 2.5% in the future.

The fund covers costs related to promotion, public relations, merchandising, product research and development, advertising campaigns, and geographically designed programs to promote Beef O Bradys restaurants, products, and services. It also administers gift cards sold by franchisees and company-owned stores. The company may charge the fund for office space, equipment rental, and administrative salaries of employees who work for the fund, while the fund charges the company and company-owned stores for marketing and advertising.

Additionally, the Marketing and Development Fund may be used to cover reasonable salaries, administrative hosting, development maintenance costs, and overhead incurred by Beef O Bradys or its designees. Dead Stock Allocations paid into the fund can be used for Dead Stock Purposes. If these allocations exceed expenditures for Dead Stock Purposes in a fiscal year, the remaining balance stays in the fund for either Marketing and Development Fund purposes or Dead Stock Purposes. Beef O Bradys may also provide franchisees with samples of advertising, marketing, and promotional materials at no cost, with multiple copies available at the franchisee's expense.