What fees can Beef O Bradys charge when they appoint a manager after the death or disability of a franchisee?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
Pending the appointment of a manager as provided above or if, in our judgment, the Family Sports Pub is not being managed properly any time after your death or disability or after the death or disability of the owner of a controlling interest in you, we have the right, but not the obligation, to appoint a manager for the Family Sports Pub.
All funds from the operation of the Family Sports Pub during the management by our appointed manager will be kept in a separate account, and all expenses of the Family Sports Pub, including wages, other costs and travel and living expenses of our manager, will be charged to this account.
We also have the right to charge a reasonable management fee (in addition to the Royalty and Marketing Contributions payable under this Agreement) during the period that our appointed manager manages the Family Sports Pub.
Operation of the Family Sports Pub during any such period will be on your behalf, provided that we only have a duty to utilize our best efforts and will not be liable to you or your Owners for any debts, losses or obligations incurred by the Family Sports Pub or to any of your creditors for any products, materials, supplies or services the Family Sports Pub purchases during any period it is managed by our appointed manager.
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 the death or disability of a franchisee or the owner of a controlling interest, Beef O Bradys has the right to appoint a manager to operate the Family Sports Pub if a trained manager is not already in place or if Beef O Bradys deems the pub is not being managed properly. During the period that Beef O Bradys' appointed manager is managing the Family Sports Pub, all funds from the operation are kept in a separate account, and all expenses of the Family Sports Pub, including wages, other costs, and travel and living expenses of the manager, will be charged to this account.
In addition to covering the expenses of the Family Sports Pub and the appointed manager, Beef O Bradys also has the right to charge a reasonable management fee. This management fee is in addition to the standard Royalty and Marketing Contributions that are normally payable under the Franchise Agreement. This means that the franchisee's estate or the disabled franchisee will be responsible for covering all operational costs, the manager's expenses, and an additional management fee charged by Beef O Bradys.
It is important to note that Beef O Bradys only has a duty to utilize its best efforts in managing the Family Sports Pub during this period. They are not liable to the franchisee, their owners, or creditors for any debts, losses, or obligations incurred by the Family Sports Pub or for any products, materials, supplies, or services purchased during the period managed by their appointed manager. This places the financial risk squarely on the franchisee's side, even while Beef O Bradys is in control of the operations.