If Beef O Bradys modifies or discontinues a Mark, what is the franchisee required to do?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
or service or in a manner not authorized in writing by us. In the Franchise Agreement, you will agree to not contest directly or indirectly our right to our Marks, trade secrets or business techniques. If we decide to modify or discontinue use of any Mark and/or use one or more additional or substitute Marks, you must comply with our directions within a reasonable time after receiving notice.
You must notify us immediately if you learn about an infringement of, or challenge to, your use of any of our Mark(s). We will have the sole right decide whether to take action and, if we do, we have the right to control exclusively any litigation or administrative proceeding relating to any of our Marks.
Source: Item 13 — TRADEMARKS. (FDD pages 42–44)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, if Beef O Bradys decides to modify or discontinue use of any Mark, or use additional or substitute Marks, franchisees must comply with Beef O Bradys's directions within a reasonable time after receiving notice. This means franchisees are obligated to adapt their business to reflect the updated branding strategies implemented by Beef O Bradys. This compliance is a requirement outlined in the franchise agreement.
However, the FDD also states that Beef O Bradys is not responsible for reimbursing franchisees for any direct expenses incurred while changing their restaurant's signs, loss of revenue due to the modified or discontinued Mark, loss of goodwill associated with the modified or discontinued Mark or expenses of promoting a modified or substitute trademark or service mark. This places the financial burden of rebranding on the franchisee, which can be a significant consideration, especially for new or struggling locations.
This policy is fairly typical in franchising, where the franchisor maintains control over branding and trademarks. While franchisees benefit from using established and recognized marks, they also bear the risk and cost of adapting to changes made by the franchisor. Prospective Beef O Bradys franchisees should carefully consider the potential costs associated with rebranding and factor this into their financial planning. It would be prudent to inquire about the frequency of brand updates and any historical examples of rebranding costs incurred by franchisees.