What is the definition of an 'Authorized Location' for a Lees Famous Recipe restaurant?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You must locate a site for your Restaurant that we approve (the "Authorized Location"), and you may not sign a lease or enter into a purchase agreement to acquire any land or building for the Authorized Location until we have given our approval in writing. As part of the approval process, you must submit to us certain development materials for the proposed Authorized Location, including a written description of your proposed Authorized Location together with evidence satisfactory to us that confirms your favorable prospects for obtaining the proposed location. We approve locations on a case-by-case basis, considering items such as size, appearance, and other physical characteristics of the site, demographic characteristics, traffic patterns, competition from other businesses in the area and other commercial characteristics, such as purchase price and financing if you are acquiring the land and buildings and rental obligations and other lease terms (including those that we require be in the lease) if you lease the premises for your Restaurant. We
will give you written notice of our approval or rejection of the proposed location within 30 days after receiving all required materials from you.
Prior to executing the lease for the Restaurant (if you are leasing the Restaurant premises), you must submit to us a copy of the lease for examination and approval. We will review the lease to ensure that it contains the terms that we require in all leases. We will give you written notice of our approval or rejection of the proposed lease within 30 days after receiving all required materials from you. You and your landlord must also execute a lease addendum in the form that we prescribe (see Exhibit C of the Franchise Agreement).
We may also require that the Authorized Location that you secure be leased directly to us or our affiliate under a form of lease that we approve; after which, we will then sublease the Authorized Location to you under the standard sublease that we use for such purposes. Alternatively, we may, at our option, require you to cause any lease to be collaterally assigned to us or our affiliate in the form that we prescribe in order to secure the performance of your obligations under the Franchise Agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–33)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, an 'Authorized Location' is a site for the restaurant that Lees Famous Recipe approves. Before signing a lease or purchase agreement for any land or building, the franchisee must receive written approval from Lees Famous Recipe.
As part of the location approval process, the franchisee must submit development materials, including a written description of the proposed location and evidence confirming favorable prospects for obtaining it. Lees Famous Recipe approves locations on a case-by-case basis, considering factors such as the site's size, appearance, physical characteristics, demographic characteristics, traffic patterns, competition, and commercial characteristics like purchase price, financing, rental obligations, and other lease terms.
Lees Famous Recipe will provide written notice of approval or rejection within 30 days after receiving all required materials. Prior to executing the lease, a copy must be submitted to Lees Famous Recipe for examination and approval to ensure it contains the terms they require. A lease addendum in the form prescribed by Lees Famous Recipe must also be executed by the franchisee and landlord. Lees Famous Recipe may also require the location be leased directly to them or their affiliate, who will then sublease it to the franchisee, or require the lease to be collaterally assigned to them or their affiliate to secure the franchisee's obligations.