Under what circumstances does a Beef O Bradys franchisee incur a Non-Compliance Fee?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
portunities, and the goodwill associated with the Marks). Therefore, if you fail to comply with any of the System Standards or any provision of any agreement between us, in addition to any other remedies we may be entitled to, we reserve the right to charge you one or more non-compliance fees upon written notice to you. The noncompliance fee equals $250 per day while the non-compliance is ongoing, may be modified from time to time upon written notice to you, may be charged daily if the non-compliance is ongoing, and may vary in an amount greater than $250 per day based on the severity of the violation, the number of the violations, and whether the violations have been repeated. The non-compliance fee will be used to compensate us for our incalculable a
Source: Item 6 — OTHER FEES. (FDD pages 12–19)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, a franchisee may incur a Non-Compliance Fee for failing to comply with System Standards or any provision of any agreement with the franchisor. This includes deviations from contractual requirements, failing to honor or participate in promotional programs, and closing the Family Sports Pub on unauthorized days. The Non-Compliance Fee is $250 per day while the non-compliance is ongoing.
The purpose of the Non-Compliance Fee is to compensate Beef O Bradys for the administrative and management costs incurred to address the violation. The FDD states that these costs are incalculable. The fee is in addition to any other remedies Beef O Bradys may be entitled to for the franchisee's non-compliance.
The Non-Compliance Fee may be modified from time to time upon written notice to the franchisee. The fee may also vary in an amount greater than $250 per day based on the severity of the violation, the number of violations, and whether the violations have been repeated. This means that repeated or severe violations of the franchise agreement or System Standards could result in significantly higher fees than the standard $250 per day.