Where are payments from other approved suppliers in connection with franchisee purchases remitted to by Beef O Bradys?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
or 2.7% in rebates from purchases by Family Sports Pubs and Brass Tap Bars.
In addition to the rebates described above, on occasion we receive payments from other approved suppliers in connection with franchisee purchases, which payments are remitted to the Marketing and Development Fund. During the fiscal year ended December 31, 2024, the Marketing and Development Fund's total income was $6,610,880 and it received $318,72
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES. (FDD pages 22–27)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, payments from approved suppliers related to franchisee purchases are remitted to the Marketing and Development Fund. During the fiscal year ending December 31, 2024, this fund's total income was $6,610,880, with $318,726, or 4.8% of its total income, coming from supplier rebates linked to franchisee purchases.
This arrangement means that a portion of the money franchisees spend with approved suppliers goes into the Marketing and Development Fund. This fund is then used for marketing and development activities that benefit the entire Beef O Bradys system. For a franchisee, this implies that while they may not directly see the benefit of these payments, they contribute to the overall marketing efforts and brand development of Beef O Bradys.
It's important for prospective franchisees to understand how the Marketing and Development Fund is managed and how these funds are used. While the FDD mentions that the fund is used for marketing and development, franchisees may want to inquire about the specific allocation of these funds and the decision-making process involved in their use. Understanding the fund's governance and transparency can help franchisees assess the value they receive from these contributions.