What is the developer's obligation regarding the use of the System for each Lees Famous Recipe Restaurant?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- C. The System and Lee's Famous Recipe Restaurants are identified by 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 parties agree and acknowledge that we have established substantial goodwill and business value in its Marks, expertise, and System.
- D. 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").
- 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.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, a developer is obligated to strictly adhere to the terms of the Area Development Agreement. This includes opening and operating each Lees Famous Recipe restaurant within the Development Area utilizing the Marks and System, as outlined in the separate Franchise Agreement. The developer acknowledges that following the Operations Manual and System standards is essential for all Lees Famous Recipe Restaurants.
The System includes site evaluation assistance, equipment selection and layouts, merchandising, advertising, sales and promotional techniques, operations training, and other elements designed to enhance the reputation and goodwill of the restaurants. The developer recognizes the benefits of operating under the Lees Famous Recipe System and aims to become a multi-unit operator.
Failure to comply with the Development Schedule or any material default under the Area Development Agreement can result in the termination or modification of the developer's territorial rights, reduction of the Development Area, or a decrease in the number of restaurants they are authorized to develop. Therefore, adherence to the System and the terms of the agreements is crucial for maintaining the developer's rights and successful operation of the Lees Famous Recipe restaurants.