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

Date of Incorporation: 1985

Franchising Since: 1998

Address: Tampa, Florida

 

Business Description: The franchisor, FSC Franchise Co., LLC operates businesses and grants franchises for businesses which operate Beef ‘O’ Brady's Family Sports Pubs, which provide food and beverage in a family-oriented environment.

 

Franchise Offer: The franchisor grants franchises to others to operate Beef 'O' Brady's Family Sports Pubs using Family Sports Concepts, Inc.'s trademarks, service marks, trade dress and business system.

 

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee the franchisee’s note, lease or obligation. Neither the franchisor nor any of its affiliates receive any consideration for placing financing with any lender.

 

Training and Assistance: The franchisee and designated managers must complete the initial seven-week training program (Beef’s Boot Camp) to the franchisor’s satisfaction and pass the training certification process. The initial training is provided at our Certified Training Locations, which are currently located in Valrico, Riverview and Temple Terrace, Florida. In addition to this training, before the location is opened, one of the franchisor’s representatives will travel to the franchisee’s location to assist in hiring and training staff and the opening of the Family Sports Pub. 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 three-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 your 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: 215

 

Investment Tables:

Initial Investment:

Expenditures Low High
Initial franchise fee $35,000
Kitchen & Pub Equipment/Smallwares $80,000 190,000
Furniture & Millwork $20,000 $60,000
TV/Sound System $20,000 $50,000
Architect Fees & Permits $3,500 $20,000
Pub Lease (per month) $8,000 $16,000
Pub Build-out $40,000 $350,000
Opening Inventory $12,000 $25,000
Signs $4,000 $10,500
Insurance $4,000 $20,000
Business & Alcoholic Beverage Licenses $500 $20,000
Computer System $18,000 $30,000
Legal & Accounting $1,000 $5,000
Franchise Opening Costs (exclusive of food and beverage inventories and local marketing), including utility deposits $6,000 $10,000
Promotional and Advertising - 4 Months $2,000 $5,000
Additional Funds - 3 months $2,500 $20,000
Estimated Total (excluding real property) $256,500 $866,500

 

Ongoing Fees:

Name 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 Monthly fee of 1.5% of previous month's Adjusted Gross Sales. 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. The Marketing and Development Fund may periodically furnish the franchisee with samples of advertising, marketing and promotional formats at cost. Multiple copies of these materials will be furnished to the franchisee at the franchisor’s 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 $2,000 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.
Pre-Opening Visit No additional fees for this training. The franchisee must pay all travel, living and compensation expenses incurred in connection with this training, at approximately $109/night for hotel and $200 flight.
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 $25
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.

The above information has been compiled from the FDD of Beef ‘O’ Brady’s.
Year of FDD: 2012

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