What must Beef O Bradys franchisees do to reflect any ownership changes in their Principal Owners Statement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
The Principal Owners Statement will completely and accurately describe all of your Owners and their interests in you.
A copy of our current form of Principal Owners Statement is attached to the Franchise Agreement as Exhibit F;
- (d) Ownership Changes.
You and your Owners agree to revise the Principal Owners Statement as may be necessary to reflect any ownership changes and to furnish such other information about your organization or formation as we may request (any and all ownership changes must be approved in advance by us);
- (e) Guaranty.
Each of your Owners during the term of this Agreement will sign and deliver to us our standard form of Principal Owner's Guaranty undertaking to be bound jointly and severally by all provisions of this Agreement and any other agreements between you and us.
A copy of our current form of Principal Owners Guaranty is attached to the Franchise Agreement as Exhibit E; and
(f) Documents and Contract. At our request, you will furnish true and correct copies of all documents and contracts governing the rights, obligations and powers of your Owners and agents (like articles of incorporation or organization, and partnership, operating or shareholder agreements).
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, franchisees must revise their Principal Owners Statement to accurately reflect any changes in ownership. These revisions are necessary to keep the statement current and accurate. The current form of the Principal Owners Statement is included as Exhibit F to the Franchise Agreement.
Furthermore, all ownership changes are subject to advance approval by Beef O Bradys. Franchisees must also furnish any other information about their organization or formation as requested by Beef O Bradys. This ensures that Beef O Bradys maintains control over the ownership structure of its franchises and has access to all relevant information about the franchisee's business.
Each owner must sign and deliver Beef O Bradys's standard form of Principal Owner's Guaranty, which binds them jointly and severally to all provisions of the Franchise Agreement and any other agreements between the franchisee and Beef O Bradys. The current form of Principal Owners Guaranty is attached as Exhibit E to the Franchise Agreement. Additionally, franchisees must provide true and correct copies of all documents and contracts governing the rights, obligations, and powers of their owners and agents, such as articles of incorporation or organization, and partnership, operating, or shareholder agreements, upon request by Beef O Bradys.