What is the developer's obligation regarding the System standards and specifications for Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
ent form of franchise agreement (each, a "Franchise Agreement").
- E. You recognize the benefits from receiving the right to operate a Lee's Famous Recipe Restaurant utilizing the System and desire to: (i) become a multi-unit operator subject to the terms of this Agreement; and (ii) receive the benefits provided by us under this Agreement.
- F. You have applied for the right to open and operate a certain number of Lee's Famous Recipe Restaurants within the Development Area as set forth in this Agreement (each, a Restaurant), and we have approved such application in reliance on Developer's representations made therein.
- G. You hereby acknowledge that adherence to the terms of this Agreement, including our Operations Manual and other System standards and specifications, are essential to the operation of all Lee's Famous Recipe Restaurants and the System as a whole. You further acknowledge that time is of the essence in all actions required under this Agreement.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
AGREEMENT
1. DEFINITIONS
- A. "Confidential Information" means the methods, techniques, formats, marketing and promotional techniques and procedures, specifications, information, recipes, Operations Manual (as defined in Section 7(E)), systems, and knowledge of and experience in the operation and franchising of Lee's Famous Recipe Restaurants that we communicate to you or that you otherwise acquire in operating the Restaurant under the System. Any and all information, knowledge and know-how not publicly known about the Lee's Famous Recipe System and the Products, and the services, standards, procedures, techniques and such other information or material as we may designate as Confidential Information will be deemed confidential for purposes of this Agreement. Confidential Information does not include information, processes or techniques that are generally known to the public, other than through disclosure (whether deliberate or inadvertent) by you.
- B. "Competing Business" means any business similar to a Lee's Famous Recipe Restaurant, including any restaurant that offers chicken and biscuits, other items similar to the Products, or any other business that may be confusingly similar to a Lee's Famous Recipe Restaurant.
- C. "Development Area" means the geographic area, identified in Exhibit A to this Agreement, where we grant you the right to develop a certain number of Lee's Famous Recipe Restaurants.
- D. "Development Fee" has the meaning given to it in Section 3(A) of this Agreement.
- E.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, a developer acknowledges that adhering to the terms of the Area Development Agreement, including the Operations Manual and other System standards and specifications, is essential for the operation of all Lees Famous Recipe Restaurants and the System as a whole. The developer also acknowledges that time is of the essence in all actions required under the agreement. The System includes site evaluation assistance, equipment selection and layouts, merchandising, advertising, sales and promotional techniques, operations training, and other matters relating to the operation and promotion of such restaurants, all of which are designed to enhance the reputation and goodwill with the public of establishments operated in accordance with the System.
The Operations Manual contains mandatory specifications, recipes, and procedures developed for the Lees Famous Recipe System, along with information relating to the developer's obligations, all of which are confidential, proprietary, and Lees Famous Recipe's exclusive property. Lees Famous Recipe may modify the System from time to time as they deem appropriate. The developer must strictly adhere to the terms of the Area Development Agreement. Each Lees Famous Recipe Restaurant within the Development Area must be opened and operated utilizing the Marks and System according to the terms and conditions set forth in Lees Famous Recipe's separate and then-current form of franchise agreement.
This means that as a multi-unit developer, you are responsible for ensuring each Lees Famous Recipe location you open conforms to the standards outlined in the Operations Manual and other guidelines. Failure to comply with these standards could be a breach of the Area Development Agreement. The developer must open and commence operations of such Restaurants in strict accordance with the Development Schedule. The developer acknowledges that this Agreement does not confer any rights to use Lees Famous Recipe's Marks or System.