What standards must a proposed transferee meet to be approved as a Beef O Bradys franchisee?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
idation or issuance of additional securities or interests representing an ownership interest in you; (iii) any issuance or sale of your stock or any security convertible to your stock; (iv) transfer of an interest in you, this Agreement or the Family Sports Pub in a divorce, insolvency or corporate or partnership dissolution proceeding or otherwise by operation of law; (v) transfer of an interest in you, this Agreement or the Family Sports Pub, in the event of your death or the death of one of your Owners, by will, declaration of or transfer in trust or under the laws of intestate succession; or (vi) pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Family Sports Pub or your transfer, surrender or loss of possession, control or management of the Family Sports Pub.
- 15.3 Conditions for Approval of Transfer. If you (and your Owners) are in full compliance with this Agreement, then subject to the other provisions of this Section 15, we will not unreasonably withhold approval of a Transfer that meets all the applicable requirements of this Section. The proposed transferee and its direct and indirect owners must be individuals of good character and otherwise meet our then applicable standards for Family Sports Pub franchisees. A Transfer of ownership, possession or control of the Family Sports Pub may only be made if the transferee enters into a new Franchise Agreement. If the Transfer is of your Family Sports Pub(s) or a controlling interest in you, or is one of a series of transfers which in the aggregate constitutes the Transfer of your Family Sports Pub(s) or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of any Transfer:
- (a) Business Experience. The transferee has sufficient business experience, aptitude and financial resources to operate the Family Sports Pub and has been approved as a franchisee;
- (b) Payment of Royalties and Fees Owed.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, a proposed transferee must meet several standards to be approved as a franchisee. The transferee and their direct and indirect owners must be individuals of good character and meet the then-applicable standards for Family Sports Pub franchisees. The transferee must have sufficient business experience, aptitude, and financial resources to operate the Family Sports Pub and must be approved as a franchisee.
Additionally, if the transfer involves development rights, the transferee must have sufficient business experience, aptitude, and financial resources to operate the business and develop the Development Area. They must either already own a Beef O Bradys Family Sports Pub or be acquiring one or more in association with the transfer. The transferee and/or its personnel must also agree to complete the initial training program to Beef O Bradys's satisfaction and meet the current owner criteria, agreeing to be bound by all terms and conditions of the Franchise Agreement for the remainder of its term.
Other conditions include paying all outstanding amounts owed to Beef O Bradys and submitting all required reports and statements. The transferee must agree to pay the costs required to bring the Family Sports Pub into compliance with the current System Standards, including purchasing and installing the approved POS System. The franchisor must also approve the material terms and conditions of the transfer, ensuring that the price and terms of payment will not adversely affect the transferee's operation of the Family Sports Pub.