For how long after termination or expiration of a Beef O Bradys franchise agreement are post-term competitive restrictions in effect?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
their nature survive the expiration or termination of this Agreement continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement, until they are satisfied in full or by their nature expire. Within 5 days immediately following termination or expiration of this Agreement for any reason, you must pay to us all fees or other amounts due us under this Agreement, or any other agreement, note, or obligation between you and us.
- 10.2 Post-Term Competitive Restrictions. Upon termination or expiration of this Agreement for any reason, you and your Owners agree that, for a period of 2 years commencing on the effective date of termination or expiration, no Restricted Person will have any direct or indirect interest (e.g. through a spouse, child, or other family member) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, member, manager, representative or agent or in any other capacity in any Competitive Business operating:
- (a) Site. At any Site or within the Development Area;
- (b) Within 15 Miles of Site. Within 15 miles of any Site or the Development Area; or
- (c) Within 15 Miles of Any Other Family Sports Pub. Within 15 miles of any other Family Sports Pub that is planned, in operation or under construction on the later of the effective date of the termination or expiration.
If any Restricted Person refuses voluntarily to comply with the foregoing obligations, the 2-year period will commence with the entry of an order of an arbitrator, or court if necessary, enforcing this provision. Each Restricted Person expressly acknowledges that he possesses skills and abilities of a general nature and has other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Section will not deprive you of your personal goodwill or ability to earn a living. You acknowledge and agree that the time and geographic restrictions contained in this Section are reasonable and necessary to protect our interests and investments and do not and will not unduly burden you or deprive you of your ability to earn a living. You acknowledge and agree that any claim you have, or may have arising from this Agreement or that you otherwise have or may have against us will not constitute a defense to our enforcement of the restrictive covenants contained in this Agreement.
- 10.3 Grant of Franchises. Upon termination or expiration of this Agreement for any reason, your rights under this Agreement will terminate and you agree to immediately and permanently cease your development activities. We will then have no further obligation to grant you additional franchises for Family Sports Pubs and will be free to operate, or grant other persons franchises to operate Family Sports Pubs within the Development Area.
- Marks and Confidential Information.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys FDD, franchisees and their owners face post-term competitive restrictions for a period of 2 years. This restriction begins on the effective date of the franchise agreement's termination or expiration.
During this 2-year period, neither the franchisee nor their owners can have any direct or indirect interest in a Competitive Business. This includes roles such as owner, investor, partner, director, officer, employee, consultant, member, manager, representative, or agent. The restrictions apply to Competitive Businesses operating at the franchise location (the Site), within 15 miles of the Site or Protected Territory, or within 15 miles of any other Beef O Bradys Family Sports Pub that is either in operation or under construction at the time of termination or expiration.
It's important to note that if someone refuses to comply with these restrictions voluntarily, the 2-year period will begin only after a court or arbitrator issues an order enforcing the provision. This means the restriction could potentially last longer than two years if legal action is required to enforce it. However, the FDD states that these restrictions should not deprive the franchisee or their owners of their ability to earn a living, as they are acknowledged to possess general skills and abilities applicable to other opportunities.