What conditions must a Lees Famous Recipe franchisee satisfy regarding defaults to be eligible for renewal?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
and the Restaurants generally, including on the Internet (or any other existing or future form of one or more electronic commerce) and to create, operate, maintain and modify, or discontinue the use of websites using the Marks.
We (for us and our affiliates) further retain all other rights not explicitly granted to you under this Agreement.
3. TERM OF FRANCHISE; RENEWAL RIGHTS
- A. Term. The term of this Agreement will be for fifteen (15) years commencing on the Effective Date.
- B. Renewal Agreement. You will have the right to enter into a renewal agreement for the Franchise for the Restaurant for one (1) additional term of fifteen (15) years, provided you satisfy the following conditions respecting the renewal term:
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- You have given us written notice at least one hundred and twenty (120) days but no more than three hundred and sixty-five (365) days before the end of the term of this Agreement of your intention to enter into a renewal agreement;
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Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, a franchisee seeking to renew their franchise agreement for an additional 15-year term must not have been in default of any material obligation within the 24 months immediately preceding the expiration of the current agreement. The definition of "material obligation" is determined at the sole discretion of Lees Famous Recipe.
To be eligible for renewal, the franchisee must continue to comply with all material provisions of the existing agreement and any other agreements with Lees Famous Recipe or its affiliates. This includes fulfilling all monetary obligations owed to Lees Famous Recipe or its affiliates. Furthermore, the franchisee must have adhered to Lees Famous Recipe's material operating and quality standards and procedures.
These conditions ensure that franchisees seeking renewal have consistently met Lees Famous Recipe's standards and obligations throughout the term of their agreement. By maintaining compliance and avoiding defaults, franchisees demonstrate their commitment to the brand and the quality standards expected of all Lees Famous Recipe locations.