What is the standard daily non-compliance fee charged by Beef O Bradys for violations?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
portunities, and the goodwill associated with the Marks). Therefore, if you fail to comply with any of the System Standards or any provision of any agreement between us, in addition to any other remedies we may be entitled to, we reserve the right to charge you one or more non-compliance fees upon written notice to you. The noncompliance fee equals $250 per day while the non-compliance is ongoing, may be modified from time to time upon written notice to you, may be charged daily if the non-compliance is ongoing, and may vary in an amount greater than $250 per day based on the severity of the violation, the number of the violations, and whether the violations have been repeated. The non-compliance fee will be used to compensate us for our incalculable a
Source: Item 6 — OTHER FEES. (FDD pages 12–19)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, a franchisee may be charged a non-compliance fee of $250 per day for failing to comply with any System Standards or any provision of any agreement. This fee is in addition to any other remedies Beef O Bradys may be entitled to. The fee is charged upon written notice and may be modified from time to time with written notice.
The non-compliance fee may be charged daily if the non-compliance is ongoing. The amount may vary and be greater than $250 per day based on the severity and number of violations, and whether the violations have been repeated. This fee is intended to compensate Beef O Bradys for its administrative and management costs resulting from the franchisee's violations.
This type of non-compliance fee is relatively common in franchising. It is designed to ensure franchisees adhere to the franchisor's standards and contractual obligations. Franchisees should be aware that repeated or severe violations could result in significantly higher fees than the standard $250 per day.