If a Beef O Bradys franchisee overpays royalties, how will the overpayment be handled?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
The amount transferred from the bank account to pay us the monthly Royalties will be based on your Family Sports Pub's Adjusted Gross Sales, as determined by us based on our review of your point-of-sale system. In addition to our own review, we may also require you to submit a daily report to us, detailing your Family Sports Pub's Gross Sales and Adjusted Gross Sales, in the form and at the time we designate in our Manuals or otherwise. If we determine, at any time, you understated the Gross Sales or Adjusted Gross Sales of your Family Sports Pub set forth in any such report, or underpaid the Royalties or other amounts due to us, we may immediately transfer such additional amounts owed us, including applicable interest and late charges, from the bank account to us. Alternatively, any overpayment will be credited to the bank account, effective as of the next scheduled payment day after you and we determine such credit is due.
Source: Item 6 — OTHER FEES. (FDD pages 12–19)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the amount of monthly royalties transferred from the franchisee's bank account is based on the Family Sports Pub's Adjusted Gross Sales, as determined by Beef O Bradys. If a franchisee overpays royalties, the overpayment will be credited to the franchisee's bank account. This credit will be effective as of the next scheduled payment day after both the franchisee and Beef O Bradys determine that the credit is due.
Beef O Bradys may require franchisees to submit a daily report detailing their Family Sports Pub's Gross Sales and Adjusted Gross Sales. If Beef O Bradys determines that a franchisee has understated their Gross Sales or Adjusted Gross Sales, or underpaid royalties or other amounts, Beef O Bradys may immediately transfer the additional amounts owed, including interest and late charges, from the franchisee's bank account.
It is important for prospective Beef O Bradys franchisees to understand how royalties are calculated and paid, and what recourse they have if they believe they have overpaid. Franchisees should maintain accurate records of their sales and royalty payments, and promptly communicate any discrepancies to Beef O Bradys. Franchisees should also be aware of Beef O Bradys's right to debit their bank account for underpayments, and take steps to ensure that sufficient funds are available to cover these debits.