What sections of the Franchise Agreement cover termination by the franchisee of the Beef O Bradys franchise?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement ("FA") | Section in Area Development Agreement ("ADA") | Summary | |
|---|---|---|---|---|
| develop the Development Area, you sign a general release and pay us a Development Fee required by the successor development agreement. | ||||
| d. | Termination by you | Sections 16.1 and 16.3 | Not Applicable | FA: If we breach the agreement and do not cure the breach after 60-days notice from you, you may terminate 60 days after you provide us with written notice of termination (subject to state law). FA: Your failure to pay any Royalties, Marketing and Development Fund Contributions or other money after you receive notice of the default granting an opportunity to cure, will mean you are willfully and wrongful breaching the Franchise Agreement and you have decided to reject and terminate the FA and all Agreements between you and us (or our affiliates) related to the FA (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION. (FDD pages 46–54)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the conditions under which a franchisee can terminate the Franchise Agreement are detailed in Sections 16.1 and 16.3.
Specifically, if Beef O Bradys breaches the Franchise Agreement, the franchisee must provide a 60-day written notice to allow Beef O Bradys to cure the breach. If Beef O Bradys fails to cure the breach within this 60-day period, the franchisee has the right to terminate the agreement 60 days after providing the initial written notice, though this is subject to state law.
Additionally, the Franchise Agreement stipulates that if a Beef O Bradys franchisee fails to make any payments (royalties, marketing and development fund contributions, or other monies) after receiving notice and an opportunity to cure the default, this will be considered a willful and wrongful breach of the Franchise Agreement. In this case, the franchisee will be seen as having rejected and terminated the Franchise Agreement and all related agreements between the franchisee and Beef O Bradys or its affiliates, again subject to state law.