Are there any items for which Beef O Bradys or its affiliates are the only approved suppliers?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
Our approval may be revoked at any time upon written notice to you.
There are no items for which we or our affiliates are approved suppliers or the only approved suppliers. None of our officers has any direct ownership interest in any of our approved suppliers.
Required Purchases. We may require you purchase from us or our designated suppliers certain goods, services, ingredients, beverages, supplies, fixtures, equipment uniforms, small wares, glassware and inventory relating to the establishment and operation of your Family Sports Pub. Currently, you must purchase all food products, pizza dough, wing sauces and dressings from our designated supplier, Sysco. However, we may add additional products that, and/or additional designated suppliers from whom, you are required to purchase at any time upon notice to you, which notice may be provided through additions to the Confidential Operating Manual.
Allowances. We may collect and retain certain manufacturing allowances, marketing allowances, rebates, credits, monies, payments and benefits (collectively, "Allowances") offered to us or to our affiliates by manufacturers, suppliers and distributors based upon your purchases of products and other goods and services. These Allowances are based on System-wide purchases of food, equipment, supplies, paper goods, merchandise and other items.
Allowances Received. We receive up to $13.12 per case from Sysco in connection with the sale of our wing sauces and dressings. We may also receive rebates based on purchases by Brass Tap Bar purchases of oil, mac and cheese and beer cheese. In the fiscal year ended December 31, 2024, our total revenues were $60,930,678 and we received $1,632,865 or 2.7% in rebates from purchases by Family Sports Pubs and Brass Tap Bars.
In addition to the rebates described above, on occasion we receive payments from other approved suppliers in connection with franchisee purchases, which payments are remitted to the Marketing and Development Fund. During the fiscal year ended December 31, 2024, the Marketing and Development Fund's total income was $6,610,880 and it received $318,726 or 4.8% of its total income in supplier rebates from franchisee purchases.
In addition, Sysco adds $0.65 per case to all food product cases purchased by franchisees, of which $0.27 per case is allocated to Dead Stock; which collected amounts (the "Dead Stock Allocation") Sysco then pays to the Marketing and Development Fund. Dead Stock Allocation funds are used as an appropriate dead stock need arises, such as paying for expired inventory, paying for inventory deemed obsolete, paying for left over products from limited time offerings, conducting research and development, covering quality assurance costs and handling other related inventory issues ("Dead Stock Purposes"). If the Dead Stock Allocation
exceeds expenditures for Dead Stock Purposes in any given fiscal year, the balance remains in the Marketing and Development Fund and is used for Marketing and Development Fund purposes or Dead Stuck Purposes. In the fiscal year ended December 31, 2024, we received $299,725. in Dead Stock Allocations and expended $21,129 or 7.0% on Dead Stock Purposes. In the fiscal year ended December 31, 2024, the Dead Stock Allocations not used for Dead Stock Purposes (i.e., $278,596) remained in the Marketing and Development Fund, which comprised 4.2% of the Marketing and Development Fund's total income.
Except as described above, neither we nor our affiliates currently derive any revenue or other material consideration as a result of franchisee required purchases or leases.
We currently negotiate purchase agreements, including price terms, with suppliers for the benefit of our franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES. (FDD pages 22–27)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, neither Beef O Bradys nor its affiliates are approved suppliers or the only approved suppliers for any items. However, Beef O Bradys may require franchisees to purchase certain goods, services, ingredients, beverages, supplies, fixtures, equipment, uniforms, small wares, glassware, and inventory from them or their designated suppliers. Currently, franchisees must purchase all food products, pizza dough, wing sauces, and dressings from Sysco, their designated supplier. Beef O Bradys retains the right to add additional products and/or designated suppliers at any time with notice to the franchisee, potentially impacting the franchisee's supply chain and costs.
Beef O Bradys also negotiates purchase agreements with suppliers, such as Sysco, to secure favorable group prices for franchisees on a system-wide basis. These negotiations are conducted by their supply management group. While there are no purchasing or distribution cooperatives currently, this indicates that Beef O Bradys actively manages the supply chain to benefit its franchisees through negotiated pricing.
If a franchisee wishes to purchase items from a supplier not already approved, they can submit a written request to Beef O Bradys. The evaluation process for alternative suppliers can take between 30 to 60 days, or potentially longer, and the franchisee or proposed supplier must cover the costs of any required inspections and testing, which could range from $50 to $3,000. Beef O Bradys may examine any factor they deem relevant in considering alternative suppliers, and their approval can be revoked at any time with written notice.
Beef O Bradys also receives allowances from suppliers based on system-wide purchases. For example, they receive up to $13.12 per case from Sysco for wing sauces and dressings. In the fiscal year ended December 31, 2024, Beef O Bradys's total revenues were $60,930,678, and they received $1,632,865 (2.7%) in rebates from purchases by Family Sports Pubs and Brass Tap Bars. These allowances and rebates can provide financial benefits to Beef O Bradys, and potentially influence their supplier selections and purchasing requirements for franchisees.