After the Beef O Bradys franchise is terminated or expires, what are the geographic limits of the non-competition covenant?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement ("FA") | Section in Area Development Agreement ("ADA") | Summary | |
|---|---|---|---|---|
| o. | Our option to purchase your business | Section 17.5 | Not Applicable | FA: We have the option to buy the Family Sports Pub(s), including leasehold rights to the Site(s), at fair market value after our termination, or your termination without cause, of the agreement (but not expiration). |
| p. | Your death or disability | Sections 15.5 and 15.6 | Section 11.6 | FA/ADA: Franchise or an ownership interest in you must be assigned to an approved buyer within 6 months and must be run by a trained manager during the period before the assignment. Assignment is subject to our right of first refusal. |
| q. | Non competition covenants during the term of the franchise | Section 10 | Section 7.3 | FA/ADA: No interest in a competitive business, no controlling ownership interest in, or performance of services for, a competitive business anywhere, no recruiting or hiring of any person who is our employee or an employee of any Family Sports Pub (subject to state law). |
| r. | Non competition covenants after the franchise is terminated or expires | Section 17.4 | Section 10.2 | FA: No interest in competing business for 2 years at, or within 15 miles of, the Site, the Protected Territory or within 15 miles of any other Family Sports Pub in operation or under construction (same restrictions apply after assignment) (subject to state law). ADA: No interest in competing business for 2 years at Site or within Development Area, within 15 miles of Site or Development Area or within 15 miles of any other Family Sports Pub in operating or under construction (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION. (FDD pages 46–54)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, if the Franchise Agreement is terminated or expires, the franchisee is subject to a non-competition covenant. This covenant restricts the franchisee from having an interest in a competing business for a period of 2 years.
The geographic scope of this restriction extends to the location of the former Beef O Bradys franchise (referred to as "the Site"), the Protected Territory granted to the franchisee, or within 15 miles of any other Beef O Bradys restaurant that is in operation or under construction. These restrictions also apply after an assignment of the franchise.
For franchisees operating under an Area Development Agreement (ADA), the non-competition covenant also lasts for 2 years. The geographic limitations include the Site or within the Development Area, within 15 miles of the Site or Development Area, or within 15 miles of any other Family Sports Pub operating or under construction. These non-compete restrictions are subject to state law, which may impact their enforceability.