Under what conditions can a Beef O Bradys franchisee terminate the franchise agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1 By You. If you and your Owners are in compliance with this Agreement and we materially fail to comply with this Agreement and do not correct or commence correction of such failure within 60 days after written notice of such material failure is delivered to us, you may terminate this Agreement effective 60 days after delivery to us of written notice of termination.
Your termination of this Agreement for any other reason or without such notice will be deemed a termination without cause.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, a franchisee can terminate the franchise agreement if they and their owners are in compliance with the agreement, and Beef O Bradys materially fails to comply with the agreement. The franchisee must provide written notice of the failure and allow Beef O Bradys 60 days to correct or begin correcting the issue. If the issue is not resolved or its correction commenced within that 60-day period, the franchisee can terminate the agreement by providing written notice of termination, effective 60 days after the delivery of the termination notice.
Terminating the agreement for any other reason or without providing the required notice will be considered a termination without cause. This distinction is important because termination without cause may have financial and legal repercussions for the franchisee, as it could trigger certain penalties or obligations outlined in the franchise agreement.
It is important to note that in Wisconsin, the Wisconsin Fair Dealership Act may supersede the requirements of Article 16 of the Franchise Agreement, potentially requiring Beef O Bradys to provide ninety (90) days' notice of termination, cancellation, non-renewal, or substantial change in competitive circumstances, and sixty (60) days for the franchisee to remedy claimed deficiencies.