Why were 18 affiliate-owned Lees Famous Recipe locations excluded from the Part I data?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
The Part I data provided below includes certain financial information for 16 Lee's Famous Recipe Locations open and operated by our affiliate for at least 18 months as of December 31, 2024. We excluded 18 locations that our affiliates acquired from existing franchisees and/or licensees and that were open and operated by our affiliate for less than 18 months as of December 31, 2024, which is the timeframe necessary to remodel the locations and fully implement updates to the Lee's Famous Recipe System. Moreover, of those 18 affiliate-owned stores, 17 of them were open and operating as corporate stores for less than 12 months as of December 31, 2024, and therefore we do not have a full accounting of their expenses for the entire 2024 calendar year.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 59–66)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, Part I data includes financial information for 16 affiliate-owned locations that were open and operated for at least 18 months as of December 31, 2024. However, 18 locations were excluded from this data set. These 18 locations were acquired by Lees Famous Recipe's affiliates from existing franchisees and/or licensees. These locations had been open and operated by the affiliate for less than 18 months as of December 31, 2024.
The reason for excluding these 18 locations is that the franchisor deemed 18 months as the necessary timeframe to remodel the locations and fully implement updates to the Lees Famous Recipe system. Furthermore, 17 of these 18 affiliate-owned stores had been operating as corporate stores for less than 12 months as of December 31, 2024. Because of this short operating period, Lees Famous Recipe did not have a complete accounting of their expenses for the entire 2024 calendar year.
This exclusion suggests that the financial performance of locations undergoing remodeling or system updates may not accurately reflect the typical performance of a Lees Famous Recipe franchise. It also highlights the importance of allowing sufficient time for new ownership and operational changes to stabilize before evaluating financial performance. A prospective franchisee should consider these factors when evaluating the financial performance representations and should inquire about the performance of locations that have recently undergone similar transitions.