Under what circumstances can Beef O Bradys terminate the Development Agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
nce with their respective franchise agreements with us. We determine if any Family Sports Pub has "opened" for purposes of meeting the Development Schedule and any Minimum Development Quota for any Development Period. If a Family Sports Pub is permanently closed after having been opened, you agree to develop and open a substitute Family Sports Pub within 1 year from the date of its permanent closing separate and apart from the Development Schedule.
3.4 Effect of Failure. Strict compliance with the Development Schedule is the essence of this Agreement. If you do not timely meet your Minimum Development Quota as of the end of any Development Period shown on the Development Schedule, you will be in default of your obligations under this Agreement. If
such a default occurs, it will constitute a material breach of this Agreement and we may then, in our sole discretion, elect to:
- (a) Terminate. Terminate this Agreement;
- (b) Loss of Exclusivity. Operate (directly or through affiliates) or grant franchises for the operation of Family Sports Pubs within the Development Area;
- (c) Extension. Grant you an extension under the Development Schedule for such time period as we specify at our sole option for a non-refundable extension fee equal to the balance of the Franchise Fees for the number of Family Sports Pubs that are to be opened and operated under the Development Schedule but are not yet open; or
- (d) Reduction of Rights. Reduce the Development Area and the Development Schedule to a size and magnitude that we estimate you are capable of operating otherwise in accordance with this Agreement.
4. DEVELOPMENT FEE.
- 4.1 Amount and Consideration. When you sign this Agreement, you agree to pay to us a development fee (the "Development Fee") and to abide by the D
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, failure to comply with the Development Schedule constitutes a material breach of the Development Agreement, which may lead to termination. Specifically, if a developer does not meet the Minimum Development Quota by the end of any Development Period, Beef O Bradys has the discretion to terminate the agreement.
In addition to termination, Beef O Bradys has other options available if the developer fails to meet the Development Schedule. These options include removing the developer's exclusivity within the Development Area, granting an extension to the Development Schedule (with a non-refundable extension fee), or reducing the size and scope of the Development Area and Schedule to align with the developer's capabilities.
The Development Fee, which is calculated as half the Franchise Fees multiplied by the number of Family Sports Pubs the developer agrees to develop, is non-refundable under any circumstance. For example, the Development Fee for developing five Family Sports Pubs would be $31,500. This upfront investment is at risk if the developer fails to meet the agreed-upon development milestones.
Prospective Beef O Bradys developers should carefully review the Development Schedule and Minimum Development Quotas outlined in the Development Agreement. Understanding these requirements and the potential consequences of non-compliance is crucial for assessing the risks and rewards of entering into a development agreement with Beef O Bradys.