How is 'Designated Territory' defined for a Lees Famous Recipe Restaurant?

According to the 2025 Lees Famous Recipe Franchise Disclosure Document, a 'Designated Territory' is defined as the geographic area identified in each respective Franchise Agreement. This area surrounds the location of a Lees Famous Recipe Restaurant and is determined by the franchisor.

For a prospective franchisee, this means that the specific boundaries of their protected territory will be outlined in their individual Franchise Agreement. The size and shape of this territory is at the discretion of Lees Famous Recipe. Franchisees should carefully review Exhibit A of the Franchise Agreement, as referenced in the definition of 'Development Area', to fully understand the scope and limitations of their territory.

It is important to note that upon expiration or termination of the Development Agreement, the franchisee will not have any territorial rights except those granted in connection with a 'Designated Territory' associated with a Restaurant that they have opened and commenced operating. This highlights the importance of understanding the terms of both the Development Agreement and the individual Franchise Agreement for each restaurant.