What advance notice is required for a Lees Famous Recipe franchisee to renew their franchise agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Term is 15 years. |
| b. | Renewal or extension of the term | 3 | If you are in good standing, you may renew for an additional 15-year term. |
| Provision | Section in franchise agreement | Summary | |
| ---- | --------------------------------------------------- | -------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| c. | Requirements for franchisee to renew or extend | 3 | Provide advance notice, not be in default within the 24 months preceding the expiration of the initial term, comply with current Franchise Agreement, satisfactorily complete any new/refresher training programs, sign a new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), remodel, provide proof you will maintain possession of the Restaurant premises and remodel the Restaurant as necessary to comply with our then-current standards and specifications, pay a renewal fee, and sign a general release of claims. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, a franchisee must provide advance notice to renew their franchise agreement. The FDD states that if a franchisee is in good standing, they may renew for an additional 15-year term.
To be eligible for renewal, the franchisee must not be in default within the 24 months before the initial term expires. They must also comply with the current Franchise Agreement, complete any new or refresher training programs, and sign a new agreement that may have materially different terms and conditions than the original agreement.
Additionally, the franchisee is required to remodel the restaurant as necessary to comply with Lees Famous Recipe's then-current standards and specifications, provide proof that they will maintain possession of the restaurant premises, pay a renewal fee, and sign a general release of claims. The specific amount of advance notice required is not specified in Item 17 of the FDD. A prospective franchisee should clarify the exact notification timeframe with Lees Famous Recipe.