How Much Is a Beef O Brady's Franchise

Detailed Information on Beef 'O' Brady's Initial Franchise Fee, Royalty Fee + 21 Other Fees (Items 5 and 6, 2022 FDD)

1.  Franchise Fee:  $37,500

• If you enter into a single Franchise Agreement with Beef 'O' Brady's, you must pay it a nonrefundable initial franchise fee (the "Franchise Fee") of $37,500 for each Family Sports Pub you will develop.

• To provide support to the veterans of the United States military, Beef 'O' Brady's offers qualified United States military veterans a 10% discount on the Franchise Fee.

2.  Area Development Fee:  half of the Franchise Fees afforded to area developers, multiplied by the number of Family Sports Pubs you agree to develop

• If you are qualified to serve as an area developer and enter into an Area Development Agreement with Beef 'O' Brady's for at least 2 Family Sports Pubs, you must pay Beef 'O' Brady's an initial development fee (the "Development Fee") upon signing the Area Development Agreement and agree to abide by a specified Development Schedule.

• The Development Fee is half of the Franchise Fees afforded to area developers, multiplied by the number of Family Sports Pubs you agree to develop.

• The Franchise Fees afforded to area developers are as follows: (i) $37,500 for the first Family Sports Pub; (ii) $25,000 for the second Family Sports Pub; (iii) $15,000 for the third Family Sports Pub; (iv) $10,000 for the fourth Family Sports Pub; and, (v) $5,000 for the fifth and all subsequent Family Sports Pubs to be developed under the Area Development Agreement.

• After paying the Development Fee, upon entering into each respective Franchise Agreement for the Family Sports Pubs you agree to develop, you must pay Beef 'O' Brady's the remaining half of the applicable reduced Franchise Fee.

3.  Royalty: 4% of previous week's Adjusted Gross Sales

• Due Date:  Payable on the day Beef 'O' Brady's designates each week.

• ACH required.

4.  Marketing and Development Fund Contribution:  you are currently required to contribute 2.3% of your previous week's Adjusted Gross Sales to the Marketing and Development Fund (but this required contribution may in the future increase to 2.5%, as Beef 'O' Brady's determines in its sole discretion)

• Due Date:  Payable on the day Beef 'O' Brady's designates each week.

5.  Router and Network Management Fee:  $75 to $95 per month

• Due Date:  Payable on the day Beef 'O' Brady's designates each week.

• For this monthly fee, Beef 'O' Brady's sells you a Meraki router with firewall software and provide you with network management.

6.  Inspection and Testing of Samples From Alternative Suppliers:  you or the supplier must pay Beef 'O' Brady's the reasonable cost of inspection and testing which is likely to range from $50 to $3,000, depending on the product or service being tested

• Due Date:  As required.

7.  Beef's Operator Training Program:  no cost for up to 3 trainees. You must pay all travel, living, and wage expenses incurred by the trainees. The amounts are unknown and may vary depending upon factors such as the third-party supplier selected and your distance from training. Additional and subsequent trainee charge: $875 per trainee, or $500 per trainee for a limited 3-week training program designed for Back of the House managers.

• Due Date:  Fee for additional or subsequent trainees due before beginning of training; expenses as incurred.

8.  Opening On-Site Assistance:  you must pay all wages for you and your employees and be responsible for the cost of all food and beverage products used. Beef 'O' Brady's will pay the costs and expenses for its personnel, so long as the Family Sports Pub opens on schedule; however, if the opening date is delayed after it has already been agreed upon, you must pay all additional expenses incurred by Beef 'O' Brady's personnel. If you request additional opening on-site assistance, you must pay a fee of $150 per day per trainer, plus wages, hotel, travel, and meal expenses.

• Due Date: As incurred.

9.  Additional On-Site Training:  $150 per day (including travel days) per corporate trainer. Plus meal per diem, and travel and hotel expenses, if applicable.

• Due Date:  As incurred.

10.  Remedial Training/On-Site:  $150 per day per trainer; $350 per package for new menu training materials. You must pay all travel, living, and meal expenses incurred by Beef 'O' Brady's personnel as well as the wages of you and your personnel in connection with this training.

• Due Date: As incurred.

11.  Interest:  the highest contract rate permitted by law

• Due Date:  When Beef 'O' Brady's requests.

12.  Late Fees:  10% penalty, plus interest

• Due Date:  Late charges due immediately upon nonpayment or underpayment.

13.  Inspection/Audit:  deficiency and late charges, plus audit costs under certain circumstances

• Due Date:  Deficiency and late charges plus audit costs due immediately.

14.  Assignment/Transfer: $18,750

• Due Date:  Before transfer.

15.  Transfer Partner Training:  the fee for up to 2 operators is included in the Transfer Fee, but you are responsible for their wages and all travel expenses, including hotel, meals, car rental, air fare, etc.

• Due Date:  Before transfer.

16.  Transfer Store Materials:  $350 for the package; a la carte price list available

• Due Date:  At the time of transfer.

17.  Replacement Manager's Training Material Fee:  $50 material fee

• Due Date:  At time of training.

18.  Interim Operating Expenses:  reasonable management expenses and costs

• Due Date:  To be determined.

19.  Replacement Manuals:  Beef 'O' Brady's then-applicable charge, currently $75 to $350

• Due Date:  When you order the replacement Manuals.

20.  Renewal:  $18,750

• Due Date:  Upon signing first Successor Agreement.

21.  Area Development Agreement – Extension Fee:  balance of the Franchise Fees for the number of undeveloped restaurants

• Due Date:  When Beef 'O' Brady's grants the extension.

22.  Health Inspection Violation Fee:  $10,000

• Due Date:  As incurred.

23.  Early Termination Fee:  an amount equal to the greater of (a) $100,000 or (b) the aggregated Royalties and Marketing Contributions paid by your Family Sports Pub for the 12 months immediately preceding the effective date of termination multiplied by 3

• Due Date:  Within 15 days of termination.

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Source: https://www.franchisechatter.com/2022/04/13/considering-a-beef-o-bradys-franchise-dont-overlook-these-25-important-franchise-fees/

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