Is there a transfer fee required for a Beef O Bradys franchise transfer?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
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. You have paid all Royalties, Marketing Contributions, amounts owed for purchases from us and all other amounts owed to us or to third-party creditors and have submitted all required reports and statements;
- (c) Completion of Initial Training. The transferee (and its Two Designated Operators) and its managerial employee (if different from your manager) have completed our training program;
- (d) New Franchise Agreement. The transferee has agreed to enter into a new Franchise Agreement;
- (e) Transfer Fee Paid. You or the transferee pay us a transfer fee equal to $20,000 (the "Transfer Fee"), ½ of which is payable prior to the transferee's Trainees beginning training.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, a transfer fee is required when transferring ownership of a Family Sports Pub. The transfer can occur if the transferee enters into a new Franchise Agreement.
The fee is $20,000, with one-half payable before the transferee's trainees begin their training. This fee is used by Beef O Bradys to cover expenses related to the transfer and the training costs for up to two designated operators of the transferee, with one operator being a managerial employee responsible for kitchen operations.
In addition to the transfer fee, the transferee is responsible for covering the costs to bring the Family Sports Pub into compliance with the current System Standards, including purchasing and installing the approved POS system. If Beef O Bradys provides training to employees beyond the two designated operators, the transferee may have to pay a fee not exceeding $1,000 per additional person trained. The transferee must also cover all travel, wages, and living expenses for all trainees attending the training program.