Under what condition are repairs to Beef O Bradys property and equipment capitalized?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
s at your Family Sports Pub or at another location and at such times that we may designate from time to time. If we require you to provide Beef's Operator Training Program, Opening On-Site Assistance or additional or refresher training to new franchisees, we will compensate you the amount we determine to be the cost incurred by you for providing such Beef's Operator Training Program, Opening On-Site Assistance or additional or refresher training and a reasonable fee to you for your providing the training.
You agree that System Standards prescribed from time to time in the Manuals, or otherwise communicated to you in writing or other tangible form, constitute provisions of this Agreement as if fully set forth herein. All references to this Agreement include all System Standards as periodically modified.
- 11.3 Modification of System Standards. We may periodically modify System Standards, which may accommodate regional or local variations as we determine. Such modifications may obligate you to invest additional capital into your Family Sports Pub ("Capital Modifications") and/or cause you to incur higher operating costs. However, such modifications will not alter your fundamental status and rights under this Agreement. We will not obligate you to make any Capital Modifications when such investment cannot in our reasonable judgment be amortized during the remaining term of this Agreement**,** plus all eligible successor periods, unless we agree to extend the term of your franchise so that such additional investment, in our reasonable judgment, may be amortized; unless such investment is necessary in order to comply with applicable laws. We agree to give you up to 90 days to comply with Capital Modifications we require. However, if a Capital Modification requires an expenditure of more than $20,000 we agree to give you up to 180 days from the date such request is made to comply with such Capital Modification. You are obligated to comply with all modifications to System Standards, including Capital Modifications, within the time period we specify. In no event will we requ
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
Based on the 2025 Beef O Bradys Franchise Disclosure Document, franchisees may be required to make modifications to their Family Sports Pub, referred to as "Capital Modifications," which could involve additional capital investment or higher operating costs. Beef O Bradys will not mandate these Capital Modifications if the investment cannot be reasonably amortized during the remaining term of the agreement, including any successor periods, unless the franchise term is extended or the investment is necessary to comply with applicable laws.
Beef O Bradys provides franchisees with a period to comply with required Capital Modifications. Specifically, franchisees are given up to 90 days to comply with standard Capital Modifications. However, if a Capital Modification necessitates an expenditure exceeding $20,000, the compliance period is extended to 180 days from the date of the request. Despite these stipulations, Beef O Bradys will not require franchisees to spend more than 25% of the total high-end Item 7 expenditure estimates for specific categories like equipment, furniture, audio/video equipment, leasehold improvements, and signage within any 12-month period for Capital Modifications.
Beef O Bradys retains the right to require franchisees to re-image their Family Sports Pub when at least 75% of the Beef O Bradys system has adopted the new re-image. Franchisees are obligated to maintain both the interior and exterior of their Family Sports Pub, along with the surrounding area, to the highest standards of cleanliness, orderliness, and sanitation, in accordance with the requirements outlined in the manuals and by federal, state, and local laws.