Does Beef O Bradys have limits on its rights to make changes to the System?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
roducts or through unapproved sources in violation thereof.
System Standards. The Confidential Operating Manual contains mandatory and suggested specifications, standards, operating procedures and rules ("System Standards") we prescribe from time to time for operation of a Family Sports Pub and information relating to your other obligations under the Franchise Agreement and related agreements. We may periodically modify System Standards, which may accommodate regional or local variations as we determine. These modifications may obligate you to invest additional capital into your Family Sports Pub and/or cause you to incur higher operating costs. You must comply with all modifications to System Standards, including capital modifications, within the time period we specify. We will not obligate you to make any capital modifications when the investment cannot, in our reasonable judgment, be amortized during the remaining term of your Franchise Agreement (plus all eligible successor periods), unless we agree to extend the term of your franchise so that the additional investment, in our reasonable judgment, may be amortized. Notwithstanding the foregoing, in the event any such capital modification is required by applicable law, you will be required to comply therewith even if the additional investment cannot be amortized. You will have up to 90 days following our notice to comply with any capital modifications we require (except for capital modification requiring an expenditure of more than $20,000, for which you will have up to 180 days). We will not require you to spend more than 25% of the total high-end Item 7 expenditure estimates set forth in this Disclosure Document for "Equipment," "Furniture, Fixtures & Millwork," "Audio and Video Equipment," "Leasehold Improvements," and "Signage", combined, on capital modifications during any 12-month period of the term of your Franchise Agreement. We may require you to make any capital modifications in order to re-image your Family Sports Pub when at least 75% of the Beef 'O' Brady's System has already adopted such new re-image.
Improvements. If you develop any new concept, process or improvement to the System, you must promptly notify us and provide us with all information related thereto. You will not be entitled to any compensation in connection with a System improvement you develop. Any System improvement you develop will become our sole property and we will be the sole owner of all related intellectual property rights. You must assign to us any rights you may have or acquire in System improvements you develop, including the right to modify the System improvement, and you will waive and/or release all rights of restraint and moral rights to the System improvements. You will assist us in obtaining and enforcing the intellectual property rights to any System improvement you develop in any and all countries and you agrees to execute and provide us with all necessary documentation for obtaining and enforcing such rights. You will appoint us agent and attorney-in-fact to
execute and file any documentation and to do all other lawful acts to further the prosecution and issuance of intellectual property right related to any System improvement you develop.
Computer Hardware and Software. You must install and utilize any computer hardware and software we designate which enables you to communicate gross sales and other operating data directly to us and engage in e-mail, intranet, internet, or point of sale functions, or other functions or uses we may designate (see Item 11). We may require you purchase on-going software or hardware support or maintenance products or services in connection with designated hardware or software. We must approve your purchase or lease of any alternative computer system or software before you purchase or lease such computer system or software. We currently require you to use the Toast point of sale system, provided by Toast, Inc. Each month you must pay us the IT Fee of $250 per month, for which we will provide you a Meraki Router with firewall software and network management service.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL. (FDD pages 45–46)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, Beef O Bradys can modify the System Standards, which may require franchisees to make additional capital investments or incur higher operating costs. However, these modifications will not alter the franchisee's fundamental rights under the Franchise Agreement.
Beef O Bradys will not require franchisees to make capital modifications if the investment cannot be reasonably amortized during the remaining term of the agreement, including eligible successor periods, unless Beef O Bradys agrees to extend the franchise term or the modification is required by law. Franchisees are given up to 90 days to comply with required capital modifications, but this is extended to 180 days if the expenditure exceeds $20,000.
Beef O Bradys also has a financial limitation, stating that Beef O Bradys will not require franchisees to spend more than 25% of the high-end Item 7 expenditure estimates for specific categories (Equipment, Furniture, Fixtures & Millwork, Audio and Video Equipment, Leasehold Improvements, and Signage) in any 12-month period for capital modifications. However, Beef O Bradys can require capital modifications for re-imaging if at least 75% of the Beef O Bradys system has adopted the new image.
In addition, Beef O Bradys can require franchisees to upgrade or obtain new computer systems within 60 days of notification, as long as the modified system is used in Beef O Bradys' or its affiliates' Family Sports Pubs. There is no limit on the frequency or cost of these computer system modifications. Franchisees must also maintain the interior and exterior of the Family Sports Pub according to standards set in the manuals and by law, and operate within the specified hours of 11:00 a.m. to 11:00 p.m., unless otherwise approved.