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Beef 'O' Brady's® Franchise Cost & Fees

Date of Incorporation: 1985
Franchising Since: 1998
Headquarters: Tampa, Florida

Business Description: The franchisor, FSC Franchise Co., LLC operates businesses and grants franchises for businesses which operate either full menu, table service Beef ‘O’ Brady’s Family Sports Pubs (Full Service Family Sports Pubs) or limited menu, fast casual Beef ‘O’ Brady’s Family Sports Pubs (Limited Service Family Sports Pubs), both of which provide food and beverage in a family-oriented environment using distinctive trademarks, service marks, trade dress and business systems.

Franchise Offer: The System requires distinctive standards and policies of product quality, service, cleanliness, and other business methods for the operation of Beef ‘O’ Brady’s Family Sports Pubs. The franchisor grants franchises to others to operate either full menu, table-service Beef ‘O’ Brady’s® Family Sports Pubs (Full Service Family Sports Pubs) or limited menu, fast casual Beef ‘O’ Brady’s Family Sports Pubs (Limited Service Family Sports Pubs) using the System under our trade names, trademarks, service marks, associated logos and symbols (the Marks).

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee the franchisee’s note, lease or obligation.

Training and Assistance: Before the Family Sports Pub’s opening, the franchisor will provide approximately 5 weeks of initial training to franchisees’ two designated managers (plus a 3rd trainee at their option), and an optional 3 weeks of training for an additional kitchen manager. The two designated managers must successfully complete the initial training program to the franchisor’s satisfaction. The franchisor may require that any management personnel franchisees subsequently employ also successfully complete the initial training program. Initial training occurs at a corporate Family Sports Pub(s) designated by the franchisor. At franchisees’ request, the franchisor will make additional or refresher training in form and content as it deems appropriate available at franchisees’ Family Sports Pub or at other locations the franchisor designates for an additional fee. Designated Managers and/or previously trained and experienced managers must also attend any periodic refresher training courses that the franchisor or its designees provide from time to time and pay the applicable fees.

Territory: The franchisee will receive an exclusive geographic territory (the Protected Territory) in which he/she will operate one Family Sports Pub. The Protected Territory will consist of the area within a 3-mile radius from the Center of the Site Selection Area. The franchisor will not sell another franchise or open a company-owned Family Sports Pub in the Protected Territory during the term of the Franchise Agreement.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If the franchisee is in good standing and not in default under the Franchise Agreement, he/she may enter into a successor franchise agreement, provided all requirements are met.

Obligations and Restrictions: The Operating Partner or Designated Managers must devote full time, energy, and best efforts to the management and operation of the Family Sports Pub, and have primary responsibility for the operations under the Franchise Agreement. If the franchisee (or the principal owner if franchisee is a Business Entity) is not actively supervising and managing the Family Sports Pub, the Operating Partner or Designated Managers must meet the following qualifications and conditions: (i) have experience satisfactory to the franchisor; (ii) have day-to-day management responsibility over the Family Sports Pub; (iii) are employed on a full-time basis to manage the Family Sports Pub; (iv) enter into the then-current form of confidentiality and non-competition agreement; and (v) satisfactorily complete the new franchisee application process which includes: participation at a Discovery Day Process, working a power shift in a designated training restaurant, completion of the seven-week Beef’s Boot Camp training program, successful certification as an Operator by a corporate approved Certification Location, completion of all pre-opening marketing obligations; and any other training and development programs deemed necessary. The franchisee must use only those products, recipes, services, equipment, programs and other items in the operation of the Family Sports Pub that the franchisor has designated. If the franchisee would like to sell any product, menu items, service, equipment or program which is not a part of the System, then he/she must seek and obtain the franchisor’s advance written permission.

Estimated Number of Units: 200

Investment Tables:
Initial Investment for Full Service
Name of Fee Low High
Initial franchise fee $35,000 $35,000
Kitchen & Pub Equipment/Smallwares $150,000 158,000
Furniture & Millwork $38,000 $45,000
TV/Sound System $30,000 $38,000
Architect Fees & Permits $8,000 $14,000
Pub Lease (per month) $8,000 $12,000
Pub Build-out $280,000 $603,000
Opening Inventory $20,000 $30,000
Signs $7,500 $15,000
Insurance $4,000 $20,000
Business & Alcoholic Beverage Licenses $500 $15,000
Computer System $19,000 $30,000
Legal & Accounting $3,000 $8,000
Utility Deposits and Impact Fees $6,000 $10,000
Promotional and Advertising - 5 Months $2,000 $5,000
Additional Funds - 3 months $20,000 $35,000
Estimated Total (excluding real property) $631,000 $1,073,000
Initial Investment for Limited Service
Name of Fee Low High
Initial franchise fee $35,000 $35,000
Kitchen & Pub Equipment/Smallwares $130,000 160,000
Furniture & Millwork $30,000 $60,000
TV/Sound System $15,000 $20,000
Architect Fees & Permits $8,000 $15,000
Pub Lease (per month) $6,000 $12,000
Pub Build-out $250,000 $450,000
Opening Inventory $20,000 $30,000
Signs $7,500 $14,000
Insurance $4,000 $20,000
Business & Alcoholic Beverage Licenses $500 $20,000
Computer System $19,000 $30,000
Legal & Accounting $3,000 $8,000
Utility Deposits and Impact Fees $6,000 $10,000
Promotional and Advertising - 5 Months $2,000 $5,000
Estimated Total (excluding real property) $536,000 $889,000
Other Fees
Type of Fee Amount
Royalty 4% (5% outside of the contiguous United States) of previous month's Adjusted Gross Sales.
Local Advertising The franchisee is required to spend $5,000 on local marketing during the first 5 months of the operation of the Family Sports Pub and it’s recommended the franchisee spend 2.5% of the monthly Adjusted Gross Sales after that time.
Marketing and Development Fund Franchisees must pay a monthly fee between 2.3% - 2.5% of previous month’s Adjusted Gross Sales. Currently, the Marketing and Development Fund Contribution is 2.3%. The franchisor may also charge separate fees for the development, hosting and maintenance of Internet and Intranet Websites, which will vary, depending on the cost of the project. Franchisees may periodically be furnished with samples of advertising, marketing and promotional formats at cost. Multiple copies of these materials will be furnished to franchisees at its direct cost of producing them, plus any related shipping, handling and storage charges.
Inspection and Testing of Samples from Alternative Suppliers The franchisee or the supplier must pay the franchisor 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.
Software License Fees An initial set-up fee of approximately $200 to $495 per location; $150 per month.
Software Maintenance Agreement $1,000 to $2,500 per year, with additional charges for afterhours support or additional training services
Beef’s Boot Camp There are no fees for training (Beef s Boot Camp is mandatory for the two designated managers; 1 additional person may attend at no charge), but the franchisee must pay all travel, living and wage expenses incurred by the trainees in connection with the training.
On-Site Training for First Store Opening The franchisee must pay all wages for him/her and his/her employees incurred in connection with this on-site training. The franchisor will pay its costs and expenses for the coordinator and three trainers, so long as the store opens on schedule. If, however, the franchisee delays the opening date after it has already been agreed upon, all additional expenses will be paid by the franchisee (e.g. change fees or rate increases in airfare, hotel, and other travel expenses along with lost wages for trainers due to the rescheduled dates).
On-Site Training for Second or Subsequent Store Opening All training materials and opening menu training package provided at no charge. The franchisee is responsible for all wages and expenses associated with training his/her new staff.
Additional On-Site Training for the Franchisee’s Staff or Management $900 per 5-day work week per corporate trainer. Plus meal per diem, and travel and hotel expenses if applicable.
Gross-Up Fees Varies under circumstances
Remedial Training/On-Site at existing location $100-200 per day per trainer; $350 per package for new menu training materials. Franchisees must pay all travel, living and meal expenses incurred in connection with this training, at approximately $140 per night for hotel and any other incurred travel expenses.
Pre-Opening Visit No additional fees for this training.
Interest 18% or the highest contract rate of interest permitted by law, whichever is less.
Late Fees 10% penalty plus interest.
Inspection/Audit Deficiency and late charges plus audit costs under certain circumstances.
Assignment/ Transfer The lesser of $20,000 or 50% of the then current Franchise Fee.
Transfer Partner Training The Training Fee for up to 2 Trainees is included in the Transfer Fee, but the franchisee is responsible for all travel expenses, including hotel, meals, car rental, air fare, etc.
Transfer Store Materials $350 for the package; ala carte price list available.
Replacement Manager's Training Material Fee $50 material fee.
Nutritional Analysis Fee $250
Interim Operating Expenses Reasonable management expenses and costs.
Replacement Manuals Currently $75-$350
Renewal 20% of the then current Franchise Fee.
Area Development Agreement – Extension Fee Balance of the Franchise Fees for the number of undeveloped restaurants.

The above information has been taken from the FDD of Beef 'O' Brady's. Year of FDD: 2015

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