Does Lees Famous Recipe claim copyright ownership for its advertising copy and design?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
ing Fund" or "Fund") the Brand Cooperative Advertising Fund Fee. We will place all Brand Cooperative Advertising Fund Fees we receive in the Brand Cooperative Advertising Fund and will manage such Fund. We also will contribute to the Brand Cooperative Advertising Fund for each Lee's Famous Recipe Restaurant in the United States that we or our affiliates develop or acquire and operate at the same percentage rate as franchised Lee's Famous Recipe Restaurants must pay to the Brand Cooperative Advertising Fund. Disbursements from the Brand Cooperative Advertising Fund will be made to pay expenses we incur, in our sole discretion, in connection with the general promotion of the Marks and System, including the cost of formulating, developing and implementing advertising, marketing, direct mail, promotional and public relations campaigns; expenses related to market research and customer and franchise satisfaction surveys; the cost of product research and development and menu development; creative development services (including creation and modification of Lee's Famous Recipe Restaurant design and trade dress, logos, menu design, graphics, and vehicle wraps, and advertising and promotional items, including the cost of retiring expired or obsolete printed items and materials, photography services, and design software); organizing and hosting franchise conferences; the development and maintenance of online ordering, website hosting and e-commerce programs; and the reasonable costs of administering the Brand Cooperative Advertising Fund, including the cost of employing advertising, public relations and other third party agencies to assist us and providing promotional brochures and advertising materials to Lee's Famous Recipe Restaurants and to regional and local advertising cooperatives, as well as accounting expenses and the actual costs of salaries and fringe benefits paid to our employees engaged in administration of the Brand Cooperative Advertising Fund.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 52–53)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, Lees Famous Recipe retains control over the creation and modification of advertising and promotional items. Specifically, the Brand Cooperative Advertising Fund is used to cover expenses related to creative development services, including the creation and modification of restaurant design and trade dress, logos, menu design, graphics, and vehicle wraps, as well as advertising and promotional items. This indicates that Lees Famous Recipe maintains ownership and control over these creative assets.
This is significant for prospective franchisees because it means they will likely be required to use the advertising and promotional materials developed and approved by Lees Famous Recipe. Franchisees contribute 3% of their gross sales to the Brand Cooperative Advertising Fund, which is used, in part, to fund these advertising efforts. While franchisees contribute to the fund, Lees Famous Recipe retains sole discretion over how the funds are spent and is not obligated to ensure that each franchisee benefits directly or on a pro rata basis from advertising placement.
This arrangement is common in franchising, where franchisors typically maintain brand consistency through control over marketing and advertising. However, franchisees should be aware that their contributions to the Brand Cooperative Advertising Fund do not guarantee direct benefits in their local market. Franchisees are expected to use the approved advertising materials and strategies to maintain a consistent brand image, and they may not have the freedom to create their own advertising campaigns without approval from Lees Famous Recipe.
Therefore, a prospective franchisee should inquire about the process for suggesting or requesting specific advertising or marketing initiatives in their local area. Understanding the level of input franchisees have in the advertising and marketing strategies can help them assess the potential effectiveness of the advertising and promotional efforts in their specific market.