Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Considering a Beef ‘O’ Brady’s Franchise? Don’t Overlook These 18 Important Franchise Fees

by Franchise Chatter on March 5, 2017

in Franchise Fees, Pub Franchise, Restaurant Franchise, Sports Bar Franchise



Franchise Chatter Membership Information

Find the Ideal Business for You

Don't Invest in a Franchise Until You Check Out This List

If you are considering a Beef ‘O’ Brady’s franchise, don’t get blindsided by these 18 important franchise fees (from the initial franchise fee, to the royalty fee, to 16 other fees found in Items 5 and 6 of Beef ‘O’ Brady’s 2016 FDD).

1.  Franchise Fee:  $17,500 to $35,000

  • You must pay an initial Franchise Fee of $35,000 for each franchised Family Sports Pub Restaurant, $17,500 of which is payable when you sign the Franchise Agreement and $17,500 of which is payable when you sign your lease for the Family Sports Pub or 30 days prior to ground breaking, whichever occurs first.
  • If you enter into an Area Development Agreement, after paying the Development Fee (as explained below), at the time of signing the lease for each Family Sports Pub opened after the first one, you must pay Beef ‘O’ Brady’s $7,500 (half of the initial Franchise Fee).
  • Under limited circumstances, Beef ‘O’ Brady’s may in its sole judgment, agree to refund some or all of your initial Franchise Fee (less its administrative expenses) if, despite your good faith efforts, you are unable to locate a suitable site for your Family Sports Pub or you are unable to secure financing.
  • Except as provided above, these fees are not refundable under any circumstance.
  • Under certain limited circumstances, Beef ‘O’ Brady’s may agree to reduce Franchise Fees for an existing franchisee purchasing additional franchises, for a new franchisee that agrees to open a Family Sports Pub in a hotel or other non-traditional location, or an existing or new franchisee that is reopening a previously closed Family Sports Pub.
  • In 2015, initial Franchise Fees ranged from $17,500 to $35,000.
  • Beef ‘O’ Brady’s will reduce its initial Franchise Fee by 10% for veterans who will own a majority interest in a Family Sports Pub, provided that the veteran meets Beef ‘O’ Brady’s qualifications for new franchisees.

2.  Area Development Fee:  $35,000 for the first Family Sports Pub, plus $7,500 multiplied by the number of additional Family Sports Pubs to be developed

  • If you are qualified and enter into an Area Development Agreement with Beef ‘O’ Brady’s, you must pay it an initial Development Fee when you sign the Area Development Agreement. The amount of the Development Fee depends upon the number of Family Sports Pubs to be opened.
  • The Development Fee equals $35,000 for the first Family Sports Pub, plus $7,500 multiplied by the number of additional Family Sports Pubs to be developed. For example, if you are a franchisee who will develop 5 Family Sports Pubs to be operated under the Area Development Agreement, the Development Fee will be $105,000 [$35,000 + ($ 17,500 x 4) = $105,000].
  • After paying the Development Fee (as explained above), at the time of signing the lease agreement for each Family Sports Pub opened under the Area Development Agreement after the first one, you must pay Beef ‘O’ Brady’s an additional $17,500 (half of the initial Franchise Fee).
  • These fees are not refundable under any circumstance.

3.  Royalty:  4% of previous month’s Adjusted Gross Sales



  • Due Date:  Payable each month on the Payment Day designated by Beef ‘O’ Brady’s.
  • ACH required.

4.  Local Advertising:  you are required to spend $5,000 on local marketing during the first 5 months of the operation of your Family Sports Pub, and Beef ‘O’ Brady’s recommends you spend 2.5% of your monthly Adjusted Gross Sales after that time

  • Due Date:  Payable each month on the Payment Day Beef ‘O’ Brady’s designates.

5.  Marketing and Development Fund Contribution:  you must pay a monthly fee between 2.3% to 2.5% of the previous month’s Adjusted Gross Sales. Currently, the Marketing and Development Fund Contribution is 2.3%.

  • Beef ‘O’ Brady’s 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.
  • You may periodically be furnished with samples of advertising, marketing, and promotional formats at cost. Multiple copies of these materials will be furnished to you at Beef ‘O’ Brady’s direct cost of producing them, plus any related shipping, handling, and storage fees.
  • Due Date:  Payable each month on the Payment Day designated by Beef ‘O’ Brady’s.
  • Full Service Family Sports Pub franchisees will pay their Marketing and Development Fund Contributions to the Full Service Marketing and Development Fund, and Limited Service Family Sports Pub Franchisees will pay their Marketing and Development Fund Contributions to the Limited Service Marketing and Development Fund.
  • While the Full Service Marketing and Development Fund and Limited Service Marketing and Development Fund contributions may be used to promote the System as a whole (i.e., Full Service Family Sports Pubs and Limited Service Family Sports Pubs collectively), no Full Service Marketing and Development Fund contributions may be used to promote Limited Service Family Sports Pubs alone and no Limited Service Marketing and Development Fund contributions may be used to promote Full Service Family Sports Pubs alone.

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:  When Beef ‘O’ Brady’s requires.

7.  Software License Fees:  an initial set-up fee of approximately $200 to $495 per location; $150 per
month

  • Due Date:  As required.
  • Currently, you must purchase, install, and maintain an RTIconnect Back Office System for each Family Sports Pub you operate.

8.  Software Maintenance Agreement:  $1,000 to $2,500 per year, with additional charges for after-hours support or additional training services

  • Due Date:  As required.

9.  Beef’s Operating Training Program:  there are no fees for up to 3 trainees (Beef’s Operating Training Program is mandatory for the Two Designated Managers; 1 additional person may attend at no charge).

  • You must pay all travel, living, and wage expenses incurred by the trainees in connection with the training.
  • Due Date:  3-4 months before the Family Sports Pub’s opening.
  • It is mandatory for your Operating Partner and your Operating Manager (“Two Designated Managers”) to attend and participate in a 5-week training session. You have the option of sending a 3rd person to this training at no additional cost.
  • At your request, Beef ‘O’ Brady’s will train additional persons in addition to the 3 included (the Two Designated Managers plus one additional trainee), prior to the opening or after opening (e.g., new hires), for $875 per each additional trainee for the 5-week training package, or $500 per trainee for a 3-week training program for your Back of the House managers.

10.  On-Site Training for First Store Opening:  you must pay all wages for you and your employees incurred in connection with this on-site training

  • Beef ‘O’ Brady’s will pay its costs and expenses for its coordinator and 4 trainers, so long as the store opens on schedule. If, however, you delay the opening date after it has already been agreed upon, all additional expenses incurred will be paid by you (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).
  • You are responsible for all expenses incurred in connection with food and beverage products used at the Family Sports Pub Restaurant during the on-site training week.
  • Due Date:  Before the Family Sports Pub’s opening.
  • Beef ‘O’ Brady’s will provide on-site staff training and opening support (consisting of 1 coordinator, 2 Front of the House Trainers, and 2 Back of the House Trainers, 6 days before opening and 6 days post-opening; all training materials and opening menu training package are at no additional charge.
  • The Two Designated Managers who attended the mandatory Beef Operator Training Program will participate in this training session as instructors.
  • If you request additional training support, the fee is $300 per day per trainer, which includes wages, hotel, and meals. You must also pay all travel and other expenses incurred for these additional trainers.
  • In addition, Beef ‘O’ Brady’s recommends that you pre-train 2 Front of the House and 2 Back of the House employees for 25 hours at an existing Family Sports Pub (all wages, costs, and expenses associated with this training would be at your expense).

11.  Additional On-Site Training for Your Staff and/or Management:  $900 per 5-day work week per corporate trainer. Plus meal per diem, and travel and hotel expense if applicable.

  • Due Date:  As incurred.
  • At your request, Beef ‘O’ Brady’s will provide additional or refresher training for an additional fee. All training materials will be provided by FSC.

12.  Remedial Training/On-Site at Existing Location:  $100-$200 per day per trainer; $350 per package for new menu training materials. You 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.

  • Due Date:  As incurred.
  • If Beef ‘O’ Brady’s determines remedial training is necessary, it will provide you with on-site training or assistance, subject to availability of its training personnel.
  • You are responsible for payment of any fees Beef ‘O’ Brady’s charges and all other expenses, including cost of transportation, lodging, meals, and wages for you and your employees who attend the training.

13.  Pre-Opening Visit:  no additional fees for this training



  • Due Date:  Before the Family Sports Pub’s opening.
  • Beef ‘O’ Brady’s will send a corporate representative to visit your Family Sports Pub before the opening date to determine the status of your building and equipment.

14.  Interest:  18% or the highest contract rate of interest permitted by law, whichever is less

  • Due Date:  When Beef ‘O’ Brady’s requests.
  • All applicable interest begins from the due date of delinquent payments.

15.  Late Fees:  10% penalty, plus interest

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

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

  • Due Date:  Deficiency and late charges plus audit costs due immediately.
  • Inspection and audit costs payable if deficiency exceeds 3% of fees payable.

17.  Assignment/Transfer:  the lesser of $20,000 or 50% of the then-current Franchise Fee (the “Transfer Fee”)

  • Due Date:  Before transfer.
  • Assignment or transfer requires Beef ‘O’ Brady’s advance written approval.

18.  Transfer Partner Training:  the Training Fee for up to 2 Trainees 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.
  • A minimum of 2 Designated Managers must be trained for 5 weeks at a Certified Training location.
  • If Beef ‘O’ Brady’s provides training to your employees other than the 2 Designated Managers, the Training Fee is $875 per person for the 5-week program.


Franchise Matching Quiz



{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: