For a Beef O Bradys franchise, what is the duration of the post-term competitive restriction following the termination or expiration of the franchise agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
17.4 Competitive Restrictions. Upon termination or expiration of this Agreement for any reason whatsoever (and you have not acquired, a Successor Franchise), you agree that, for a period of 2 years commencing on the effective date of termination or expiration neither you nor any of your Owners will have any direct or indirect interest (including through a spouse, child or other Family Member) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, member, manager, representative or agent or in any other capacity in any Competitive Business operating:
(a) At the Site.
At the Site or within the Protected Territory;
- (b) Within 15 Miles of Site.
Within 15 miles of the Site or Protected Territory; or
- (c) Within 15 Miles of Another Family Sports Pub.
Within 15 miles of any other Family Sports Pub in operation or under construction on the later of the effective date of the termination or expiration.
If any person restricted by this Section refuses voluntarily to comply with the foregoing obligations, the 2-year period will commence with the entry of an order of an arbitrator, or court if necessary, enforcing this provision. You expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Section will not deprive you or your Owners of your or their personal goodwill or ability
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, franchisees and their owners face a post-term competitive restriction for a period of 2 years. This restriction begins on the effective date of the termination or expiration of the Franchise Agreement. During this time, neither the franchisee nor their owners can have any direct or indirect interest in a Competitive Business.
The restriction applies to any Competitive Business operating at the franchise's original site or within the Protected Territory. It also extends to businesses within 15 miles of the original site or Protected Territory, and within 15 miles of any other Family Sports Pub that is either in operation or under construction. The definition of a "Competitive Business" includes any establishment that features similar menu items, products, or services as Beef O Bradys, such as restaurants, bars, or catering services offering items like chicken wings, beef, hamburgers, chicken, or sandwiches, or any bar operating as a sports pub.
If a restricted individual refuses to comply with these obligations voluntarily, the 2-year period will commence upon the entry of an order from an arbitrator or court enforcing the provision. The FDD acknowledges that franchisees possess general skills and abilities and have other opportunities to use these skills, so the enforcement of these restrictions should not deprive them of their personal goodwill or ability.