What is the minimum early termination fee for a Beef O Bradys franchise?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement, you will be |
| (1) Type of Fee | (2) Amount | (3) Due Date | (4) Remarks* required to pay us a fee of $10,000. |
|---|---|---|---|
| Early Termination Fee | An amount equal to the greater of (a) $100,000 or (b) the aggregated Royalties and Marketing Contributions paid by your Family Sports Pub for the twelve (12) months immediately preceding the effective date of termination multiplied by three (3). | Within fifteen (15) days of termination. | In the event the agreement is terminated before expiration of the Term, to account for the actual damages that we shall suffer as a result of the termi |
Source: Item 6 — OTHER FEES. (FDD pages 12–19)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, franchisees may face an early termination fee if the Franchise Agreement is terminated before its expiration. This fee is designed to cover the damages Beef O Bradys would incur as a result of the early termination.
The early termination fee is calculated as the greater of two amounts: $100,000, or three times the aggregated Royalties and Marketing Contributions paid by the Family Sports Pub for the twelve months immediately preceding the termination date. This means that a franchisee's recent financial performance will heavily influence the termination fee. If a Beef O Bradys location has low sales, the minimum fee will be $100,000. However, a location with higher sales volume could face a substantially higher termination fee based on the royalties and marketing contributions paid.
This fee is due within fifteen days of termination. Prospective franchisees should carefully consider this potential cost and factor it into their financial planning. It is important to understand the conditions under which termination might occur and to assess the potential financial burden of this fee, as it could represent a significant expense in the event of early termination.