What fee is required to obtain an extension of the Development Schedule from Beef O Bradys, and is it refundable?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
chise agreements with us. We determine if any Family Sports Pub has "opened" for purposes of meeting the Development Schedule and any Minimum Development Quota for any Development Period. If a Family Sports Pub is permanently closed after having been opened, you agree to develop and open a substitute Family Sports Pub within 1 year from the date of its permanent closing separate and apart from the Development Schedule.
3.4 Effect of Failure. Strict compliance with the Development Schedule is the essence of this Agreement. If you do not timely meet your Minimum Development Quota as of the end of any Development Period shown on the Development Schedule, you will be in default of your obligations under this Agreement. If
such a default occurs, it will constitute a material breach of this Agreement and we may then, in our sole discretion, elect to:
- (a) Terminate. Terminate this Agreement;
- (b) Loss of Exclusivity. Operate (directly or through affiliates) or grant franchises for the operation of Family Sports Pubs within the Development Area;
- (c) Extension.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, if a franchisee fails to meet the minimum development quota within the set Development Schedule, they may request an extension. The fee for this extension is equal to the remaining balance of Franchise Fees for the number of Family Sports Pubs that were supposed to be opened under the Development Schedule but have not yet been opened.
This extension fee is non-refundable. This means that even if the franchisee is unable to open the remaining restaurants within the extended timeframe, they will not receive a refund of the extension fee. This policy incentivizes franchisees to adhere to the original development schedule and carefully consider their ability to meet the quota before committing to a development agreement with Beef O Bradys.
It's important for prospective Beef O Bradys franchisees to understand the financial implications of failing to meet the development schedule. The cost of an extension could be significant, potentially equaling the franchise fees for multiple unopened locations. Franchisees should carefully assess their financial resources and operational capabilities before agreeing to a specific development schedule to minimize the risk of incurring this non-refundable extension fee.
In the event that a franchisee defaults on the Development Schedule, Beef O Bradys has other options besides granting an extension. They can terminate the agreement, remove the franchisee's exclusivity in the Development Area, or reduce the size of the Development Area and Schedule.