Under what condition will Beef O Bradys grant development rights during the term of the agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2 Successor Rights and Conditions.
- (a) Development Area. At the expiration of the term of this Agreement, if you and we both determine that additional Family Sports Pubs should be developed in the Development Area, we will offer you the right to enter into a successor area development agreement (a "Successor Agreement") if you meet all of the following conditions:
- (i) you agree to further develop the Development Area in accordance with the Development Schedule that you and we agree upon and is established in the Successor Agreement;
- (ii) you (or any affiliate) are not in default of any provision of this Agreement, any Franchise Agreement, or any other agreement you (or an affiliate) have entered into with us (or our affiliates);
- (iii) you sign and deliver to us the Successor Agreement (which will be our thencurrent form of Area Development Agreement), which may include different fees and performance criteria and schedules;
- (iv) you pay to us the Development Fee required by the Successor Agreement; and
- (v) you sign and deliver to us a general release, in the form attached to the Franchise Disclosure Document, of any and all claims against us and our officers, directors, employees, agents, affiliates, successors and assigns.
- (b) Sole Operator. After initially deciding that the Development Area does not warrant additional Family Sports Pubs, if we later decide otherwise, we may offer you the right to enter into a Successor Agreement (on the conditions described in Section 2.2(a) if you continue to be the only operator of Family Sports Pubs in the Development Area).
- 2.3 Timing and Method. Not less than 6 months nor more than 12 months prior to the expiration of this Agreement, you will notify us that you wish to enter into a Successor Agreement with us. After receiving that notice, we will either deliver to you the form of Successor Agreement, including the proposed Development Schedule to be used in the Successor Agreement or our written notice that we have determined that no additional Family Sports Pubs may be developed in the Development Area. You and we must both sign and deliver to each other the Successor Agreement (with a completed Successor Development Schedule) at least 30 days prior to the expiration of the term of this Agreement. If you do not sign and deliver to us the Successor Agreement,
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, under certain conditions, a franchisee may have the opportunity to enter into a successor area development agreement at the expiration of their current agreement. This "Successor Agreement" allows for the continued development of Family Sports Pubs within the Development Area.
Beef O Bradys will offer the franchisee the right to a Successor Agreement if both parties agree that additional Family Sports Pubs should be developed in the Development Area. To qualify, the franchisee (or any affiliate) must not be in default of any agreement with Beef O Bradys or its affiliates. The franchisee must also sign and deliver the current form of Area Development Agreement, which may include different fees, performance criteria, and schedules, and pay the required Development Fee. Additionally, the franchisee must sign and deliver a general release of all claims against Beef O Bradys and its related parties.
Furthermore, if Beef O Bradys initially decides that the Development Area does not warrant additional Family Sports Pubs but later changes its mind, the franchisee may be offered the right to enter into a Successor Agreement if they continue to be the only operator of Family Sports Pubs in the Development Area. The conditions described above in Section 2.2(a) would still apply. The franchisee must notify Beef O Bradys of their interest in a Successor Agreement no less than 6 months and no more than 12 months prior to the expiration of the current agreement. Both parties must sign and deliver the Successor Agreement at least 30 days before the expiration of the current term.