Is a transfer of a Beef O Bradys franchise interest due to death considered a 'Transfer'?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
ice. The foregoing remedies are in addition to our other remedies and rights under this Agreement and applicable law, which may include termination of this Agreement.
15. TRANSFER.
- 15.1 By Us. This Agreement is fully transferable by us, and inures to the benefit of any transferee or other legal successor to our interests, as long as such transferee or successor agrees to be bound by, and assumes all of our continuing obligations under, this Agreement.
- 15.2 By You. You understand and acknowledge that the rights and duties created by this Agreement are personal to you (or, if you are a Business Entity, to your Owners) and that we have granted the Franchise to you in reliance upon our perceptions of your (or your Owners') individual or collective character, skill, aptitude, attitude, business ability and financial capacity. Accordingly, neither this Agreement (or any interest in it) nor any ownership or other interest in you or the Family Sports Pub may be transferred without our prior written approval. Any Transfer without such approval constitutes a breach of this Agreement and is void and of no effect. As used in this Agreement, the term "Transfer" includes your (or your Owners') voluntary, involuntary, direct or indirect assignment, sale, gift or other disposition of any interest in: (a) you; (b) this Agreement; or (c) the Family Sports Pub. An assignment, sale, gift or other disposition includes the following events: (i) transfer of or change in ownership of capital stock or a partnership interest; (ii) merger or consolidation 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.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, a transfer of franchise ownership or interest due to death is considered a 'Transfer.' The FDD specifies that the term 'Transfer' includes the transfer of interest in the franchisee, the Franchise Agreement, or the Family Sports Pub in the event of death of the franchisee or one of the owners. This transfer can occur through a will, declaration of trust, or intestate succession laws.
Following the death of a Beef O Bradys franchisee or owner, the executor, administrator, or personal representative is required to transfer the interest to a third party approved by Beef O Bradys within six months. This transfer is subject to all the standard conditions for transfers outlined in the Franchise Agreement. If the transfer is not completed within the specified timeframe, it constitutes a breach of the agreement.
This clause ensures that Beef O Bradys maintains control over who operates its franchises, even in the event of the franchisee's death. The requirement for a swift transfer prevents any disruption in the operation of the Family Sports Pub and ensures that the new owner meets Beef O Bradys's standards. Prospective franchisees should be aware of these conditions and consider them when planning for the future of their business.