Under what conditions does the Addendum to the Franchise Agreement for Beef O Bradys automatically terminate?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum automatically terminates on the earliest date on which one of the following occurs: (1) the Franchise Agreement is terminated; (2) the Loan is paid; or (3) SBA no longer has any interest in the SBA financing.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, the Addendum to the Franchise Agreement for franchisees obtaining SBA assisted financing will automatically terminate under specific conditions. This addendum is required by the SBA as a condition for obtaining SBA-assisted financing.
The addendum will terminate on the earliest date that any of the following conditions occur: the Franchise Agreement is terminated, the loan is paid off, or the SBA no longer has any interest in the SBA financing.
This is important for a prospective Beef O Bradys franchisee to understand because the addendum contains specific terms related to the SBA loan and the franchise agreement. Once the addendum terminates, those specific terms are no longer in effect. For example, the clause stating that Beef O Bradys' approval of a transfer or assignment pursuant to Section 15 of the Franchise Agreement shall not be unreasonably withheld would no longer be valid.