Under what conditions can Beef O Bradys terminate a franchise agreement before its expiration?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
t to and on the exact terms of such offer, subject to our approval of the Transfer as otherwise provided in this Agreement, provided that, if the sale to such purchaser is not completed within 120 days after delivery of such offer to us, or if there is a material change in the terms of the sale (which you agree promptly to communicate to us), we will have an additional right of first refusal during the 30-day period following either
the expiration of such 120-day period or notice to us of the material change(s) in the terms of the sale, either on the terms originally offered or the modified terms, at our option.
16. TERMINATION OF AGREEMENT.
- 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.
- 16.2 By Us. We have the right to terminate this Agreement**,** effective upon delivery of written notice of termination to you, if:
- (a) You (or any of your Owners) have made any material misrepresentation or omission in connection with your purchase of the Franchise;
- (b) You or the required number of your Two Designated Operators fail to successfully complete Beef's Operator Training Program to our satisfaction or you have not fulfilled all of the conditions for management of the Family Sports Pub;
- (c) You (i) fail to obtain our approval of the Site within the required time periods or (ii) fail to commence construction of the Family Sports Pub within 6 months of the Effective Date;
- (d) You abandon or fail to actively operate the Family Sports Pub for 2 or more consecutive business days, unless the Family Sports Pub has been closed for a purpose we have approved or because of casualty or government order;
- (e) You surrender or Transfer control of the operation of the Family Sports Pub without our prior written consent;
- (f) You (or any of your Owners) are or have been convicted by a trial court of, or plead or have pleaded no contest, or guilty, to, a felony or other serious crime or offense that is likely to adversely affect your reputation, our reputation or the reputation of any other Family Sports Pub;
- (g) You (or any of your Owners) engage in any dishonest or unethical conduct which may adversely affect the reputation of the Family Sports Pub or another Family Sports Pub or the goodwill associated with the Marks;
- (h) You (or any of your Owners) make an unauthorized assignment of this Agreement or of an ownership interest in you or the Family Sports Pub;
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the franchise agreement can be terminated by Beef O Bradys if certain conditions are met. Beef O Bradys can terminate the agreement, effective immediately upon delivering written notice, if the franchisee or their owners make any material misrepresentation or omission when purchasing the franchise. Termination can also occur if the franchisee or their designated operators fail to complete the required Beef's Operator Training Program satisfactorily or fail to meet all conditions for managing the Family Sports Pub.
Further, Beef O Bradys can terminate the agreement if the franchisee abandons or fails to actively operate the Family Sports Pub for two or more consecutive business days, unless the closure is approved by Beef O Bradys or due to unforeseen circumstances like casualty or government order. Transferring control of the Family Sports Pub without prior written consent from Beef O Bradys is also grounds for termination. Conviction of the franchisee or their owners for a felony or any serious crime that could negatively impact the reputation of the franchise, Beef O Bradys, or other Family Sports Pubs can also lead to termination.
Dishonest or unethical conduct by the franchisee or their owners that may harm the reputation of the Family Sports Pub or the goodwill associated with the Marks can result in termination. Additionally, failure to comply with any provision of the Franchise Agreement or any other agreement with Beef O Bradys, if not corrected within 10 days after written notice, can lead to termination. Repeated defaults, defined as two or more failures to comply within a 12-month period or three failures during the term of the agreement, even if corrected after notice, also constitute grounds for termination. Finally, if Beef O Bradys delivers a termination notice for another Franchise Agreement to the franchisee or an affiliate, or if the franchisee terminates another Franchise Agreement without cause, Beef O Bradys can terminate the agreement.
These termination conditions highlight the importance of compliance and ethical behavior for Beef O Bradys franchisees. Prospective franchisees should carefully review these conditions and understand the potential consequences of non-compliance. The cross-default clause also indicates that any breach of other agreements with Beef O Bradys can trigger termination, emphasizing the interconnectedness of all agreements between the franchisee and franchisor.