Can the non-compliance fee for a Beef O Bradys franchise be modified?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
h the following: (i) $18,000 for your first Family Sports Pub; (ii) $13,000 for your second Family Sports Pub; (iii) $11,000 for your third Family Sports Pub; (iv) $8,000 for your fourth Family Sports Pub; and (v) $7,000 for your fifth and all subsequent Family Sports Pubs.
- 6.4 Non-Compliance Fee. Any deviation from any contractual requirement, including failing to comply with System Standards, failing to honor or participate in promotional programs, closing your Family Sports Pub on unauthorized days, and any other deviation, is a violation and will require us to incur incalculable administrative and management cos
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the non-compliance fee can be modified. The document states that if a franchisee fails to comply with System Standards or any provision of any agreement, Beef O Bradys reserves the right to charge one or more noncompliance fees upon written notice.
The standard non-compliance fee is $250 per day while the noncompliance is ongoing. However, this fee may be modified from time to time upon written notice. The fee may also vary in an amount greater than $250 per day based on the severity and number of the violations, and whether the violations have been repeated.
This means that while there is a standard fee, Beef O Bradys retains the right to adjust the fee depending on the specific circumstances of the non-compliance. For a prospective franchisee, this highlights the importance of adhering to all System Standards and contractual requirements to avoid potential non-compliance fees, which could be substantial depending on the nature and duration of the violation.