Does the FDD include financial statements for both Beef O Bradys and Holdco?

According to Beef O Bradys's 2025 Franchise Disclosure Document, the FDD includes audited financial statements for both Beef O Bradys and its parent company, Holdco. Specifically, Exhibit A of the FDD contains (1) audited financial statements for Beef O Bradys as of December 31, 2024, December 31, 2023, and December 31, 2022, and (2) audited financial statements for Holdco as of the same dates.

This inclusion of both sets of financial statements provides prospective franchisees with a more comprehensive view of the financial health and stability of the entire franchise system. It allows them to assess not only the performance of the franchising entity (Beef O Bradys) but also the financial strength of its parent company (Holdco), which ultimately backs the franchise agreement.

Furthermore, Holdco provides an absolute and unconditional guarantee to assume Beef O Bradys's duties and obligations under the Franchise Agreement if Beef O Bradys is unable to perform them. This guarantee, also included in Exhibit A, offers an additional layer of security for franchisees, as it demonstrates Holdco's commitment to the franchise system and its willingness to step in if necessary. The audited financial statements allow franchisees to evaluate Holdco's capacity to fulfill this guarantee.

In the franchise industry, it is common for franchisors to include their audited financial statements in the FDD, but the inclusion of the parent company's financial statements and a guarantee of performance is a notable strength. This practice provides increased transparency and reassurance to potential franchisees, allowing them to make a more informed investment decision.