What is the developer's obligation regarding the use of approved services in the Lees Famous Recipe System?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant qualified third parties the right to develop a certain number of Lee's Famous Recipe Restaurants within a Development Area in accordance with the terms of this Agreement to which Developer must strictly adhere, with each Lee's Famous Recipe Restaurant within the Development Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in our separate and then-current form of franchise agreement (each, a "Franchise Agreement").
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.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, the developer is obligated to strictly adhere to the terms of the Development Agreement. This agreement grants the developer the right to develop a certain number of Lees Famous Recipe Restaurants within a specific Development Area. Each restaurant must be opened and operated utilizing the Marks and System as outlined in the then-current form of the franchise agreement.
The FDD emphasizes that adherence to the Operations Manual and System standards and specifications is essential for all Lees Famous Recipe Restaurants. The System includes the sale of approved products and services, décor, equipment, supplies, confidential information, business techniques, methods, procedures, and sales promotion programs. Lees Famous Recipe retains the right to modify the System from time to time.
The developer acknowledges that the System contains proprietary and confidential information, making it unique. This includes methods, information, procedures, and theories contained in the relevant manuals. The developer's compliance with the Development Schedule is also critical, and failure to comply may result in the termination or modification of their territorial rights. The developer must also submit site approval forms and data for each restaurant to be developed.