For a Beef O Bradys franchise, what section of the agreement defines 'Alcohol Restriction Law'?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TERM | DEFINITION |
|---|---|
| Alcohol Restriction | A state or local law which prohibits or restricts in any way your ability to pay |
| Law | and our ability to collect Royalties, Marketing Contributions or other amounts |
| Section 6.13 | derived from the sale of alcoholic beverages. |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, the term 'Alcohol Restriction Law' is defined in Section 6.13 of the agreement. This law refers to any state or local regulation that prohibits or restricts a franchisee's ability to pay royalties, marketing contributions, or other amounts derived from the sale of alcoholic beverages, as well as the franchisor's ability to collect these payments.
This definition is important for prospective Beef O Bradys franchisees because it clarifies the conditions under which royalty and marketing contribution payments could be affected. If a franchisee operates in an area where such a law exists, it could impact the financial obligations to the franchisor.
Understanding this definition helps franchisees assess the potential risks associated with operating a Beef O Bradys franchise in specific locations, particularly those with stringent alcohol regulations. Franchisees should carefully review Section 6.13 and seek legal counsel to fully understand the implications of any alcohol restriction laws in their area.