How is the 'Royalty' fee calculated for a Beef O Bradys franchise, and how often is it paid?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
The stores owned and operated by the Company and franchises pay a monthly fee, equal to 2.3% of net sales for the Beef 'O' Brady's fund and 1.5% of net sales for the Brass Tap Fund.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
I am unable to provide information on how the royalty fee is calculated for a Beef O Bradys franchise. The provided excerpts from the 2025 Franchise Disclosure Document do not include details on the specific royalty fee structure, such as the percentage of gross sales or any minimum payment requirements. The excerpts also do not specify how frequently the royalty fee must be paid (e.g., weekly, monthly).
However, the excerpts do mention a monthly fee paid by franchisees to the Beef 'O' Brady's Marketing and Development Fund, which is equal to 2.3% of net sales. This fee is separate from the royalty fee and is used for marketing and advertising purposes.
For a prospective franchisee, understanding the royalty fee structure is crucial for assessing the profitability of the franchise. Therefore, it is recommended that you ask the franchisor directly for detailed information on how the royalty fee is calculated, when it is due, and whether there are any other fees based on sales or revenue.