During the term of the Beef O Bradys agreement, can a Restricted Person engage in a Competitive Business?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree and acknowledge that we would be unable to protect the Confidential Information against unauthorized use or disclosure and would be unable to encourage a free exchange of ideas and information among Family Sports Pubs if owners of franchised Family Sports Pubs were permitted to hold any interest in any business or facility owning, operating, or managing, or granting franchises or licenses to others to own, operate or manage, any bar, sports pub, restaurant, food service facility or other business that features menu items, products and/or services similar to any of the menu items, products and/or services offered by the Family Sports Pubs, including, by way of example and without limitation, any restaurant, bar or catering service that offers chicken wings, beef, hamburgers, chicken, or sandwiches or any bar which operates as a sports pub (other than a Family Sports Pub under a franchise agreement with us) (a "Competitive Business").
You also acknowledge that we have entered into this Agreement with you in part in consideration of and in reliance on your agreement to deal exclusively with us.
Therefore, you agree as follows:
(a) Noncompetition and Nonsolicitation: During the term of this Agreement neither you nor any of your Owners if you are a Business Entity (a "Restricted Person") will:
(i) No Competitive Business.
Engage in a Competitive Business or perform services for a Competitive Business, directly or indirectly, as a director, owner, proprietor, officer, manager, employee, consultant, representative, agent, independent contractor or otherwise, except under a franchise agreement with us or our affiliates;
- (ii) Disclosed or Beneficial Owner in a Competitive Business.
Have any direct or indirect interest, as a disclosed or beneficial owner, in a Competitive Business, except under franchise agreements with us or our affiliates;
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, during the term of the franchise agreement, a Restricted Person is generally prohibited from engaging in a Competitive Business. A "Restricted Person" includes the franchisee and any of their owners if the franchisee is a business entity.
A "Competitive Business" is defined as any business that owns, operates, manages, or grants franchises or licenses to others for bars, sports pubs, restaurants, food service facilities, or other businesses that offer similar menu items, products, or services to Beef O Bradys. Examples include restaurants, bars, or catering services that offer chicken wings, beef, hamburgers, chicken, or sandwiches, or any bar operating as a sports pub (excluding a Beef O Bradys franchise).
However, there are exceptions. A Restricted Person can engage in a Competitive Business if it's under a franchise agreement with Beef O Bradys or its affiliates. This non-compete agreement ensures franchisees remain dedicated to the Beef O Bradys system and do not use confidential information to benefit a competing business during the term of their agreement.