bash - Pipe search pattern to BSD grep

I have this command string which worked perfectly well in OS X 10.6.8 (Snow Leopard) (which tells me its grep is grep (GNU grep) 2.5.1)...

$ grep -hi 'TERM' file1.txt | cut -d '|' -f 3 | grep -f - file2.txt

(Finding all lines with TERM in them in file1, cutting each down to the unique ID number in field 3, then looking up those IDs in file2)

And yet this fails in OS X 10.11.5 (El Capitan) (which tells me its grep is grep (BSD grep) 2.5.1-FreeBSD)...

grep: -: No such file or directory

I really don't want to install GNU grep on this machine. Is there a way to fix the second grep command so BSD grep will work? Or a better way to go about it generally?

Some sample code:

file1.txt would look like:

Jones Inc||000123||foo||bar
TerminatorLLC||000124||foo||bar
Conan LP||000125||foo||bar
Termites-R-Us||000126||foo||bar

file2.txt like:

000123||210 Main Street||moo||car
000124||Los Angeles||moo||car
000125||Mythical Kingdom||moo||car
000126||Your Woodwork||moo||car