Under what conditions can Beef O Bradys charge a non-compliance fee?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES.]
administrative and management costs to address the violation (separate and apart from any damages your violation might cause to the System, our business opportunities, 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 administrative and management costs due to your violations.
Note 6 Any deviation from any contractual requirement, including failing to comply with System Standards, failing to honor or participate in promotional programs, closing your Family Sports Pub on unauthorized days, and any other deviation, is a violation and will require usto incur incalculable
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 non-compliance fee may be charged if a franchisee fails to comply with any of the System Standards or any provision of any agreement between Beef O Bradys and the franchisee. This is in addition to any other remedies Beef O Bradys may be entitled to. The purpose of the non-compliance fee is to compensate Beef O Bradys for administrative and management costs resulting from the franchisee's violations.
The non-compliance fee is $250 per day while the non-compliance is ongoing. This fee may be modified from time to time upon written notice to the franchisee. The fee may be charged daily if the non-compliance continues and may vary in an amount greater than $250 per day based on the severity and number of violations, and whether the violations have been repeated.
Note 6 in Item 6 of the FDD states that any deviation from any contractual requirement, including failing to comply with System Standards, failing to honor or participate in promotional programs, closing your Family Sports Pub on unauthorized days, and any other deviation, is a violation and will require Beef O Bradys to incur incalculable administrative and management costs to address the violation.