What does the 'Area Development Agreement' outline for a Lees Famous Recipe franchise?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Restaurant's Authorized Location. We and you agree that the Restaurant will be located |
|---|---|
| at the following premises: You acknowledge that our consent to a proposed location is not a representation or warranty of any kind by us or our affiliates as to the suitability of the proposed location for a Lee's Famous Recipe Restaurant. | |
| 2. | Designated Territory. The Designated Territory will be the following: |
| 3. | Restaurant Opening. You agree to complete the development and open the Restaurant for business within twelve (12) months after the date first stated above, or in accordance with the development obligations as described in the Area Development Agreement, if applicable. |
| 4. | Defined Terms. All capitalized terms contained in this Exhibit not defined herein will have |
| the same meaning as provided in the Franchise Agreement. | |
| WE: | YOU: |
| LEE'S FRANCHISOR LLC | Name of corporation or limited liability company |
| By | By |
| Name: | Name: |
| Its | Its |
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, Exhibit A outlines the restaurant's authorized location. Both Lees Famous Recipe and the franchisee must agree to the restaurant's location. The exhibit also specifies the designated territory granted to the franchisee. The franchisee must complete development and open the restaurant within twelve months of the agreement date, or according to the development obligations outlined in the Area Development Agreement, if one exists.
If an Area Development Agreement is in place, the specific obligations for development are outlined within that agreement. This suggests that the Area Development Agreement supersedes the standard 12-month opening deadline, providing a potentially different timeline or set of conditions for opening the Lees Famous Recipe restaurant.
Prospective franchisees should carefully review Exhibit A and any associated Area Development Agreement to fully understand their obligations regarding site selection, territory, and the timeline for opening their Lees Famous Recipe restaurant. Understanding these obligations is crucial for successful franchise operations.