Under what conditions can Beef O Bradys fully transfer the Franchise Agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
idation or issuance of additional securities or interests representing an ownership interest in you; (iii) any issuance or sale of your stock or any security convertible to your stock; (iv) transfer of an interest in you, this Agreement or the Family Sports Pub in a divorce, insolvency or corporate or partnership dissolution proceeding or otherwise by operation of law; (v) transfer of an interest in you, this Agreement or the Family Sports Pub, in the event of your death or the death of one of your Owners, by will, declaration of or transfer in trust or under the laws of intestate succession; or (vi) pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Family Sports Pub or your transfer, surrender or loss of possession, control or management of the Family Sports Pub.
- 15.3 Conditions for Approval of Transfer. If you (and your Owners) are in full compliance with this Agreement, then subject to the other provisions of this Section 15, we will not unreasonably withhold approval of a Transfer that meets all the applicable requirements of this Section. The proposed transferee and its direct and indirect owners must be individuals of good character and otherwise meet our then applicable standards for Family Sports Pub franchisees. A Transfer of ownership, possession or control of the Family Sports Pub may only be made if the transferee enters into a new Franchise Agreement. If the Transfer is of your Family Sports Pub(s) or a controlling interest in you, or is one of a series of transfers which in the aggregate constitutes the Transfer of your Family Sports Pub(s) or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of any Transfer:
- (a) Business Experience. The transferee has sufficient business experience, aptitude and financial resources to operate the Family Sports Pub and has been approved as a franchisee;
- (b) Payment of Royalties and Fees Owed. You have paid all Royalties, Marketing Contributions, amounts owed for purchases from us and all other amounts owed to us or to third-party creditors and have submitted all required reports and statements;
- (c) Completion of Initial Training. The transferee (and its Two Designated Operators) and its managerial employee (if different from your manager) have completed our training program;
- (d) New Franchise Agreement. The transferee has agreed to enter into a new Franchise Agreement;
- (e) Transfer Fee Paid. You or the transferee pay us a transfer fee equal to $20,000 (the "Transfer Fee"), ½ of which is payable prior to the transferee's Trainees beginning training. The Transfer Fee is used to defray expenses we incur in connection with the Transfer and the costs of training up to Two Designated Operators of the Transferee (one of whom must be a managerial employee responsible for the Family Sports Pub's kitchen operations). We may provide training to employees of the Transferee, in addition to the training that must be completed by the Two Designated Operators of the Transferee.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, a transfer of ownership, possession, or control of the Family Sports Pub can occur if the transferee enters into a new Franchise Agreement. Several conditions must be met either before or at the same time as the transfer's effective date. These conditions apply if the transfer involves the Family Sports Pub or a controlling interest in it, or if it is one of a series of transfers that collectively result in the transfer of the Family Sports Pub or a controlling interest.
First, the proposed transferee and their direct and indirect owners must be of good character and meet Beef O Bradys's standards for franchisees. The transferee must possess sufficient business experience, aptitude, and financial resources to successfully operate the Family Sports Pub and must be approved as a franchisee by Beef O Bradys. All outstanding royalties, marketing contributions, amounts owed for purchases, and any other debts to Beef O Bradys or third-party creditors must be paid. Additionally, all required reports and statements must be submitted.
The transferee, along with their Two Designated Operators and managerial employees (if different from the current manager), must complete the Beef O Bradys training program. The transferee must agree to enter into a new Franchise Agreement with Beef O Bradys. Finally, either the current franchisee or the transferee must pay Beef O Bradys a transfer fee of $20,000. Half of this fee is due before the transferee's trainees begin their training. This fee is used to cover expenses related to the transfer and the costs of training up to Two Designated Operators, with one being a managerial employee responsible for kitchen operations. Beef O Bradys may also provide additional training to other employees of the transferee.
If Beef O Bradys does not exercise its option to purchase the Family Sports Pub, the franchisee is responsible for de-identifying the location after the agreement's expiration or termination date. This includes removing all signage, furnishings, memorabilia, and décor bearing the Beef 'O' Brady's name or logo to prevent public confusion. These stipulations ensure that the brand's standards are maintained and that the new ownership is properly trained and financially prepared to operate the franchise.