Can the Beef O Bradys franchise agreement be modified, and if so, what are the requirements for modification?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
s at your Family Sports Pub or at another location and at such times that we may designate from time to time. If we require you to provide Beef's Operator Training Program, Opening On-Site Assistance or additional or refresher training to new franchisees, we will compensate you the amount we determine to be the cost incurred by you for providing such Beef's Operator Training Program, Opening On-Site Assistance or additional or refresher training and a reasonable fee to you for your providing the training.
You agree that System Standards prescribed from time to time in the Manuals, or otherwise communicated to you in writing or other tangible form, constitute provisions of this Agreement as if fully set forth herein. All references to this Agreement include all System Standards as periodically modified.
- 11.3 Modification of System Standards. We may periodically modify System Standards, which may accommodate regional or local variations as we determine. Such modifications may obligate you to invest additional capital into your Family Sports Pub ("Capital Modifications") and/or cause you to incur higher operating costs. However, such modifications will not alter your fundamental status and rights under this Agreement. We will not obligate you to make any Capital Modifications when such investment cannot in our reasonable judgment be amortized during the remaining term of this Agreement**,** plus all eligible successor periods, unless we agree to extend the term of your franchise so that such additional investment, in our reasonable judgment, may be amortized; unless such investment is necessary in order to comply with applicable laws. We agree to give you up to 90 days to comply with Capital Modifications we require. Howev
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, the franchise agreement can be modified, potentially obligating the franchisee to invest additional capital into their Family Sports Pub and/or incur higher operating costs. These modifications, referred to as "Capital Modifications," will not alter the franchisee's fundamental status and rights under the agreement. Beef O Bradys will not require franchisees to make Capital Modifications if the investment cannot be amortized during the remaining term of the agreement, including eligible successor periods, unless the term is extended or the investment is necessary to comply with applicable laws.
Beef O Bradys agrees to provide franchisees with up to 90 days to comply with required Capital Modifications. However, if a Capital Modification requires an expenditure exceeding $20,000, the compliance period extends to 180 days from the date of the request. Franchisees are obligated to comply with all modifications to System Standards, including Capital Modifications, within the specified timeframe.
Beef O Bradys will not require franchisees to spend more than 25% of the total high-end Item 7 expenditure estimates for "Equipment," "Furniture, Fixtures & Millwork," "Audio and Video Equipment," "Leasehold Improvements," and "Signage" combined, as outlined in the Franchise Disclosure Document, within any 12-month period during the agreement's term. Beef O Bradys retains the right to require franchisees to re-image their Family Sports Pub when at least 75% of the Beef 'O' Brady's System has already adopted the new re-image.