How are payments for Royalties and other amounts due to Beef O Bradys required to be made?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.5 Electronic Funds Transfer and Payment Procedure. We require you to pay all payments of the Royalties or any other amounts due us under this Agreement to us by electronic funds transfer.
We will designate the day of each week or month (the "Payment Day") for the Royalty payment or payment of other amounts due us under this Agreement.
We may designate different Payment Days for different amounts due us under this Agreement (e.g.
Royalty, Marketing Contributions, etc.).
You agree to comply with the procedures we specify in our Confidential Operating Manuals and perform such acts and sign and deliver such documents as may be necessary to accomplish payment by this method.
You will give us authorization, in a form that we designate, to initiate debit entries or credit correction entries to the Family Sports Pub's bank operating account (the "Account") for payments of Royalties and other amounts due under this Agreement, including any applicable interest charges.
You will make the funds available in the Account for withdrawal by electronic transfer no later than the Payment Day.
The amount actually transferred from the Account to pay Royalties will be based on the Family Sports Pub's Adjusted Gross Sales as determined by us based on our review of your POS System.
Notwithstanding the foregoing, however, you must still report your Family Sports Pub's Gross Sales and Adjusted Gross Sales on a daily basis in the form and at the time that we designate in our manuals or otherwise.
If we determine at any time that you have under-stated the Gross Sales and/or Adjusted Gross Sales set forth in any such report or underpaid Royalties or other amounts due to us, we may immediately transfer to ourselves such additional amounts owed to us, including applicable interest and late charges, from the Account.
Any overpayment will be credited to the Account through a credit, effective as of the next scheduled Payment Day after you and we determine that such credit is due.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, all Royalty payments and any other amounts due to Beef O Bradys must be paid via electronic funds transfer. Beef O Bradys will designate a specific day each week or month as the "Payment Day" for these payments, and may set different Payment Days for different amounts due, such as Royalties and Marketing Contributions.
As a franchisee, you must comply with the procedures outlined in Beef O Bradys's Confidential Operating Manuals, including signing and delivering necessary documents to facilitate electronic payments. You'll authorize Beef O Bradys to initiate debit or credit correction entries to your Family Sports Pub's bank account for Royalties and other amounts owed, including any applicable interest charges. It is your responsibility to ensure that funds are available in the designated account for withdrawal by electronic transfer no later than the Payment Day.
The amount transferred will be based on your Family Sports Pub's Adjusted Gross Sales, as determined by Beef O Bradys's review of your POS system. You are still required to report your Gross Sales and Adjusted Gross Sales daily in the format and at the time specified by Beef O Bradys. If Beef O Bradys determines that you have under-stated your sales or underpaid Royalties or other amounts, they may immediately transfer the additional amounts owed, including interest and late charges, from your account. Any overpayment will be credited back to your account on the next scheduled Payment Day after the discrepancy is resolved.