When is the Beef O Bradys Royalty fee due?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Type of Fee | (2) Amount | (3) Due Date | (4) Remarks* |
|---|---|---|---|
| Royalty | 5% of previous month's Adjusted Gross Sales (Note 1) | Payable on the day we designate each month. | ACH required. |
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 Royalty fee, which is 5% of the previous month's Adjusted Gross Sales, is payable on the day that Beef O Bradys designates each month. Payment via ACH (Automated Clearing House) is required, meaning Beef O Bradys will electronically debit the franchisee's designated bank account for the royalty payment.
Beef O Bradys requires franchisees to maintain a bank account that serves as the sole depository for all Gross Sales proceeds and other funds generated from the operation of the Family Sports Pub. Franchisees must authorize Beef O Bradys to initiate debit entries or credit correction entries to this bank account for royalty payments and any other amounts owed under the Franchise Agreement, including interest charges. The franchisee is responsible for ensuring that sufficient funds are available in the bank account for electronic withdrawal by Beef O Bradys.
It is important to note that failure to maintain the designated bank account or to authorize electronic transfers constitutes a default under the Franchise Agreement. Additionally, franchisees cannot change or close the bank account without prior approval from Beef O Bradys. These requirements ensure that Beef O Bradys can efficiently collect royalty payments and other fees, while also providing a mechanism for correcting any overpayments or underpayments.