What happens upon the death or disability of a Beef O Bradys franchisee?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
of this Agreement.
If we do not exercise our right of first refusal, you or your Owners may complete the Transfer on the terms contained in the offer, subject to our approval of the Transfer as described in this Section of this Agreement. If the Transfer as described in the offer is not completed within 120 days after delivery of the offer to us, or if there is a material change in the terms of the Transfer, we will again have the right of first refusal as described in this Agreement.
- 11.6 Death or Permanent Disability. Upon your death or permanent disability or that of one of your Owners, the executor, administrator, conservator or other personal representative of such person must Transfer his interest within a reasonable time, not to exceed 6 months from the date of death or permanent disability, to a third party approved by us. Such Transfer, including, without limitation, Transfer by devise or inheritance, is subject to all the conditions for Transfers contained in Section 11.4 and, unless transferred by gift, devise or inheritance, subject to the terms of Section 11.5. Failure to dispose of such interest within that time period constitutes a breach of this Agreement. Our consent to a Transfer of any interest subject to the restrictions of this Section does not constitute a waiver of any claims we may have against the assignor; nor will it be deemed a waiver of our right to demand the assignee's exact compliance with any of the terms or conditions of this Agreement or any Franchise Agreements.
- 11.7 Public Offerings of Securities. Notwithstanding any other provisions of this Agreement, you agree not to, without our prior written consent, sell or offer to sell any of your securities if such sale or offer would be required to be registered pursuant to the provisions of the Securities Act of 1933, as amended, and the rules and regulations pursuant thereto, or the securities laws of any other state or territory of the United States of America or of any other jurisdiction.
- 11.8 Franchise Transfers. A Transfer of any Family Sports Pub developed pursuant to this Agreement may be made only in connection with the Transfer of the Franchise Agreement for such Family Sports Pub, and a Transfer of the Franchise Agreement for any such Family Sports Pub may be made only in connection with the Transfer of all interests of yours in such Family Sports Pub (or the affiliate that owns such Family Sports Pub). A Transfer must comply with all of the requirements for a Transfer set forth in the Franchise Agreement.
12. RELATIONSHIP OF THE PARTIES/INDEMNIFICATION.
- 12.1 Independent Contractors. You and we understand and agree that this Agreement does not create a fiduciary relationship between the parties. We and you are independent contractors. Nothing in this Agreement is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose. You agree to conspicuously identify yourself in all dealings as the owner of development rights granted under an Area Development Agreement with us in the ways we specify for doing so. If you do not, we may place such notices to accomplish the foregoing and you must reimburse us for doing so. You agree to place notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we may require from time to time.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee or one of their owners, their representative must transfer the interest in the franchise within six months to a Beef O Bradys-approved third party. This transfer is subject to all the standard conditions for transfers outlined in the franchise agreement. Failure to transfer the interest within the specified time frame constitutes a breach of the agreement.
If the Family Sports Pub is not being managed by a trained manager, the executor, administrator, conservator, guardian, or other personal representative must appoint a manager to operate the Family Sports Pub within 15 days of the death or disability. This manager will be required to complete training at the expense of the estate or the disabled owner.
Beef O Bradys retains the right, but not the obligation, to appoint a manager for the Family Sports Pub if a manager isn't appointed or if Beef O Bradys believes the pub isn't being managed properly. All funds from the operation of the Family Sports Pub during the management by Beef O Bradys' appointed manager will be kept in a separate account, and all expenses of the Family Sports Pub, including wages, other costs, and travel and living expenses of the manager, will be charged to this account. Beef O Bradys also has the right to charge a reasonable management fee, in addition to the Royalty and Marketing Contributions payable under this Agreement, during the period that their appointed manager manages the Family Sports Pub.
The term "disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent the franchisee or an Owner of a controlling interest from managing and operating the Family Sports Pub.