What costs are included in 'Occupancy' for a Lees Famous Recipe location, and what expense is removed?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Occupancy" are costs the include property taxes, licenses and permits, building repairs and maintenance, and equipment repairs and maintenance.
We have adjusted occupancy to remove rent expense, as some franchises may lease in a variety of methods or own property to operate Lee's Famous Recipe locations.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 59–66)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the 'Occupancy' costs include property taxes, licenses and permits, building repairs and maintenance, and equipment repairs and maintenance. However, the document specifically notes that rent expense has been removed from this category.
This adjustment is made because Lees Famous Recipe franchises may operate in various property arrangements, including leasing or owning their locations. The franchisor recognizes that rent expenses can vary significantly based on market conditions and the type of location a franchisee chooses.
For a prospective franchisee, this means that the 'Occupancy' costs presented in the financial performance representation do not reflect rental expenses. Therefore, franchisees must independently account for rent when projecting their potential earnings. This exclusion allows for a more standardized comparison across different locations, but it also places the onus on the franchisee to accurately estimate their rent expenses based on their specific location and lease terms.