If Beef O Bradys pays my trade accounts or taxes, how quickly must I reimburse them?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to maintain your trade accounts in a current status and seek to resolve any disputes with trade suppliers promptly.
You agree to timely pay all taxes incurred in connection with your Family Sports Pub's operations.
If you fail to maintain your trade accounts in a current status, timely pay such taxes or any other amounts owing to any third parties or perform any non-monetary obligations to third parties, we may, but are not required to, pay any and all such amounts and perform such obligations on your behalf.
If we elect to do so, then you agree to reimburse us for such amounts.
You agree to repay us immediately upon receipt of our invoice.
We may also set-off the amount of any such reimbursement obligations against all amounts which we may owe you.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, if you fail to maintain your trade accounts or pay taxes related to your Family Sports Pub operations, Beef O Bradys has the option to step in and cover these obligations on your behalf.
Should Beef O Bradys choose to pay any of your outstanding trade accounts, taxes, or other amounts owed to third parties, you are obligated to reimburse them for the expenses incurred. The FDD specifies that you must repay Beef O Bradys immediately upon receiving their invoice for the amounts paid.
Furthermore, Beef O Bradys retains the right to offset the reimbursement amount against any sums they may owe you, providing them with an additional mechanism for recovering the funds spent on your behalf. This immediate repayment requirement is stricter than some franchise agreements, which might allow for a longer repayment period.