factual

What is the developer's obligation regarding the use of methods in the Lees Famous Recipe System?

Lees_Famous_Recipe Franchise · 2025 FDD

Answer from 2025 FDD Document

Subject to the terms and conditions set forth herein, we grant you the right, and Developer undertakes the obligation, to develop and establish the number of Restaurants set forth in the Development Area, provided you open and commence operations of such Restaurants in strict accordance with the Development Schedule.

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.

The Operations Manual will contain mandatory, specifications, recipes and procedures that we develop for Lee's Famous Recipe System and information relating to your other obligations, all of which are confidential, proprietary, and our exclusive property.

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.

Developer hereby acknowledges and agrees that: (i) the System and our related materials contain significant proprietary and confidential information that makes the System unique as a whole; and (ii) the combined methods, information, procedures, and theories that make up the total System or are contained in the relevant manuals are proprietary and confidential.

Source: Item 23 — RECEIPTS (FDD pages 70–287)

What This Means (2025 FDD)

According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the developer undertakes the obligation to develop and establish the number of restaurants set forth in the Development Area. The developer must open and commence operations of such restaurants in strict accordance with the Development Schedule.

The developer acknowledges that adherence to the terms of the Development Agreement, including Lees Famous Recipe's Operations Manual and other System standards and specifications, are essential to the operation of all Lees Famous Recipe Restaurants and the System as a whole. The Operations Manual contains mandatory specifications, recipes, and procedures that Lees Famous Recipe develops for the System. This information relates to the developer's obligations and is considered confidential, proprietary, and the exclusive property of Lees Famous Recipe.

The developer recognizes the benefits of operating a Lees Famous Recipe Restaurant utilizing the System and desires to become a multi-unit operator subject to the terms of the Development Agreement. The developer acknowledges that the System and related materials contain significant proprietary and confidential information that makes the System unique. The combined methods, information, procedures, and theories that make up the total System or are contained in the relevant manuals are proprietary and confidential.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.