How does the Beef O Bradys franchise agreement define the term 'Owner'?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
en evaluated through April 29, 2024, which is the date the consolidated financial statements were available to be issued.
Notes to Consolidated Financial Statements December 31, 2023 and 2022
3. Revenue Recognition
Disaggregation of Revenue
Revenues disaggregated by timing of revenue recognition consist of the following for the years ended December 31:
| TERM | DEFINITION |
|---|---|
| Owner Section 19.16 | Any person holding a direct or indirect, legal or beneficial ownership interests or voting rights in another person (or a transferee of this Agreement or an interest in you), and the o |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, the term 'Owner' is comprehensively defined within the franchise agreement to encompass a wide range of individuals and entities with a financial stake or controlling interest in the franchisee's business. This definition extends beyond just direct ownership to include those with indirect interests or voting rights. This broad scope ensures that Beef O Bradys can effectively monitor and regulate who has influence over or benefits from the franchise.
Specifically, the definition includes any person holding a direct or indirect, legal or beneficial ownership interest or voting rights in another person, as well as transferees of the agreement or an interest in the franchisee. It also encompasses officers, directors, partners, members, or holders of a beneficial interest in any person who has 5% or more of a direct or indirect beneficial interest in the franchisee or the agreement. This means that even individuals or entities with a relatively small stake (5% or more) can be considered 'Owners' under the agreement.
Furthermore, the definition extends to any person who has any other legal or equitable interest, or the power to vest in himself any legal or equitable interest, in the revenue, profits, rights, or assets of the franchise. This catch-all provision ensures that anyone who could potentially benefit financially or exercise control over the franchise is subject to the terms and conditions of the franchise agreement. This comprehensive definition allows Beef O Bradys to maintain control over the franchise and ensure that all parties involved are aligned with the brand's standards and interests.