What is the developer's obligation regarding the use of the Marks 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 acknowledge that this Agreement is not a Franchise Agreement and does not confer upon you any rights to use our Marks or System.
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, a developer is granted the right to develop a certain number of Lees Famous Recipe Restaurants within a specific Development Area. A key obligation is that each restaurant within this area must be opened and operated utilizing the Marks and System, adhering strictly to the terms and conditions outlined in the then-current Franchise Agreement. This means the developer must use the "Lee's Famous Recipe®," "Famous Recipe®," and "Lee's: Famous for Chicken®" service marks, and other related trademarks and service marks as we periodically may modify (the "Marks") used in operating the System.
The FDD emphasizes that adherence to the terms of the Development Agreement, including the Operations Manual and System standards, is essential for all Lees Famous Recipe Restaurants. The developer acknowledges that the agreement itself does not grant any rights to use the Marks or System, but rather, these rights are governed by the separate Franchise Agreement for each restaurant. This underscores the importance of understanding and complying with both the Development Agreement and the individual Franchise Agreements.
Lees Famous Recipe retains certain rights, including the right to operate or grant others the right to operate restaurants at Non-Traditional Venues within the Development Area and to promote and sell products under different trademarks through various channels of distribution. However, the developer is protected from Lees Famous Recipe establishing or licensing others to establish a Restaurant in the Development Area, provided the developer is in compliance with their obligations and the Franchise Agreements, until the Development Agreement expires, the last required Restaurant is opened, or the final date specified in the Development Schedule is reached.