What is the current supplier and product approval fee for Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
ale and meeting the standards of quality and uniformity for the System. In addition, you agree to use in the operation of the Restaurant only such beverages, ingredients, recipes, formulas, supplies and equipment that we have approved as being suitable for use and meeting the standards of quality and uniformity for the System and are purchased from suppliers we have approved (which may include us and/or our affiliates). We periodically may modify the lists of approved Products, services, brands and suppliers. If you propose to offer for sale or use in operating the Restaurant any products, ingredients, supplies and equipment which we have not approved, you must first notify us in writing, pay our then-current supplier and product approval fee (currently $500 per supplier or item) and any related costs we incur, and provide sufficient information, specifications and samples concerning the brand and/or supplier to permit us to determine whether the brand complies with our specifications and standards and/or the supplier meets our approved supplier criteria. We will notify you within thirty (30) days of our receipt of all requested documents, information, and items whether the proposed brand and/or supplier is approved. We may
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, if a franchisee wants to introduce a product, ingredient, supply, or piece of equipment that is not already approved, they must first seek approval from Lees Famous Recipe. To do so, the franchisee must notify Lees Famous Recipe in writing and pay a supplier and product approval fee.
The FDD states that the current supplier and product approval fee is $500 per supplier or item. The franchisee is also responsible for covering any related costs that Lees Famous Recipe incurs during the approval process. The franchisee must provide sufficient information, specifications, and samples to allow Lees Famous Recipe to assess whether the new brand complies with their standards and if the supplier meets their criteria.
Lees Famous Recipe will then notify the franchisee of their decision within 30 days of receiving all the necessary documents, information, and items. Lees Famous Recipe may also develop procedures for submitting approval requests and obligations for approved suppliers, potentially including a written agreement. Lees Famous Recipe can also limit the number of suppliers or brands for any products and may require franchisees to use only one supplier for certain items.
It is important for prospective franchisees to understand this policy because it affects their ability to introduce new products or use different suppliers. Franchisees should factor in this $500 fee and any associated costs when considering whether to request approval for a new supplier or product. This also highlights the importance of carefully reviewing the list of approved suppliers and products to ensure they meet the franchisee's needs before signing the franchise agreement.