What is the franchisee's obligation regarding funds availability in the Account for Beef O Bradys?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TERM | DEFINITION |
|---|---|
| Marketing | You currently must contribute to the Marketing Development Fund 2.3% of |
| Contributions | monthly Adjusted Gross Sales but may in the future be required to contribute |
| Section 12.1 | 2.5% of your monthly Adjusted Gross Sales. |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
Based on the 2025 Beef O Bradys Franchise Disclosure Document excerpts, there is no information provided regarding a franchisee's obligation to maintain funds availability in a specific account. The provided excerpts focus on various financial aspects of the Beef O Bradys and Brass Tap franchises, including marketing and development funds, related party transactions, credit risk concentrations, and franchisee concentrations, but do not detail any requirements for franchisees to maintain specific account balances.
While the document discusses the Marketing Development Fund and the franchisee's contribution to it, this is a percentage of monthly adjusted gross sales (2.3% or 2.5%), not a requirement to keep a certain amount of funds available. The FDD excerpts also mention financial instruments and credit risks, but these pertain to the company's financial management rather than franchisee obligations for fund availability.
Therefore, a prospective Beef O Bradys franchisee should ask the franchisor directly about any requirements to maintain a minimum balance or specific level of funds availability in any designated account. This information is crucial for understanding the full financial obligations and responsibilities associated with operating a Beef O Bradys franchise.