What acknowledgement does Lees Famous Recipe require regarding the franchisee's independent investigation before entering into the Franchise Agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Independent Investigation. You acknowledge that you have entered into this Agreement after making an independent investigation of our operations and not upon any representation as to gross revenues, volume, potential earnings or profits which you might be expected to realize, nor has anyone made any other representation, which is not expressly stated herein, to induce you to accept this franchise and sign this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, franchisees must acknowledge that they conducted an independent investigation of the franchise opportunity before signing the Franchise Agreement. This acknowledgement confirms that the franchisee's decision to invest in a Lees Famous Recipe franchise was based on their own due diligence and not solely on representations made by the franchisor regarding potential revenues, earnings, or profits.
Lees Famous Recipe requires franchisees to acknowledge that they did not rely on any representations about potential financial performance that are not explicitly stated in the Franchise Agreement. This is a standard practice in franchising, intended to protect the franchisor from claims of misrepresentation if the franchisee's business does not perform as expected. The franchisee bears the responsibility for assessing the viability of the business opportunity.
Furthermore, the franchisee must acknowledge receiving the Franchise Agreement and the Franchise Disclosure Document within the timeframes mandated by the Federal Trade Commission, and that they had the opportunity to seek clarification and consult with advisors. By signing the agreement, the franchisee confirms they understand its provisions and agree to be bound by them. This acknowledgement is a critical component of the franchise agreement, designed to ensure that franchisees enter the agreement with a clear understanding of their rights and obligations.