When is the renewal fee of $20,000 due for a Beef O Bradys franchise?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
tify the completion of |
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Type of Fee | Amount | Due Date | Remarks* any such replacement manager's training. |
| Interim Operating Expenses | $1,200 per week, plus reasonable expenses, including travel, lodging and meals. | To be determined. | Management expenses and costs apply when we operate your Family Sports Pub on an interim basis. |
| Replacement Manuals | Our then-applicable charge (currently $350) plus shipping | When you order the replacement Manuals | If your copy of the Manuals is lost, destroyed or significantly damaged, you must obtain a replacement copy at our then-applicable charge, unless we have made online Manuals accessible to you for use. |
| Renewal | $20,000 | Upon signing first successor agreement. | If you are in compliance with the Franchise Agreement, we may grant you up to 2 successor franchises, each with 5- year terms. You will not be required to pay an additional renewal fee upon your signing of the second successor agreement. |
| Area Development Agreement – Extension Fee | Balance of the Franchise Fees for the number of undeveloped restaurants | When we grant the extension | If you do not meet your Minimum Development Quota obligations under an Area Development Agreement as of the end of any development period set forth on the Development Schedule, we may (but are not obligated to) grant you an extension under the Development Schedule in exchange for the nonrefundable extension fee set forth in column 2. |
| Health Inspection Violation Fee | $10,000 | As incurred | In the event you receive a health inspection violation, then in addition to our other rights and |
Source: Item 6 — OTHER FEES. (FDD pages 12–19)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the renewal fee of $20,000 is due upon signing the first successor agreement. Beef O Bradys may grant up to two successor franchises, each with a 5-year term, provided the franchisee is in compliance with the Franchise Agreement.
For a Beef O Bradys franchisee, this means that if they wish to continue operating their franchise beyond the initial term, they will need to pay a $20,000 renewal fee when they sign the first successor agreement. However, they will not be required to pay an additional renewal fee when signing the second successor agreement.
This condition highlights the importance of remaining in compliance with the Franchise Agreement to be eligible for renewal. The renewal fee is a significant cost to consider when planning for the long-term operation of a Beef O Bradys franchise.