Does Lees Famous Recipe's consent of a site constitute a warranty of its suitability?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby acknowledge and agree that our consent of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Restaurant or for any other purpose.
Our consent of the site indicates only that we believe the site complies with acceptable minimum criteria established by us solely for its purposes as of the time of the evaluation.
Both you and we acknowledge that application of criteria that may have been effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to approval by us of a site, certain demographic factors, such as competition from other similar businesses, included in or excluded from criteria used by us could change, thereby altering the potential of a site.
Such factors are unpredictable and are beyond our control.
We will not be responsible for the failure of a site that we approved to meet your expectations as to revenue or operational criteria.
You further acknowledge and agree that your acceptance of a franchise for the operation of a Restaurant at a site is based on your own independent investigation of the suitability of the site.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, Lees Famous Recipe's consent of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Restaurant or for any other purpose. The consent indicates only that Lees Famous Recipe believes the site complies with acceptable minimum criteria established by them solely for its purposes as of the time of the evaluation.
Both Lees Famous Recipe and the franchisee acknowledge that criteria effective for other sites may not predict the potential for all sites. Demographic factors, such as competition, could change after approval, altering the site's potential. These factors are unpredictable and beyond Lees Famous Recipe's control, and they will not be responsible if an approved site fails to meet the franchisee's expectations for revenue or operational criteria.
The franchisee agrees that their decision to operate a Lees Famous Recipe Restaurant at a site is based on their own independent investigation of the site's suitability. This means that while Lees Famous Recipe provides site evaluation assistance as part of its System, the ultimate responsibility for ensuring the location is viable rests with the franchisee. Prospective franchisees should conduct thorough market research and due diligence before committing to a specific location.