What is the developer's obligation regarding the use of the System in the Lees Famous Recipe System?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
"System" means our system relating to the franchising of Lee's Famous Recipe Restaurants that sell chicken and other approved food, beverage and other products sold, which 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.
2. DEVELOPMENT AREA; DEVELOPMENT SCHEDULE; AND RESERVATION OF RIGHTS.
- A. 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.
- B. You also understand and agree that the Development Area does not include, and we reserve all franchise and development rights respecting any Non-Traditional Venues located within the geographic boundaries of the Development Area.
- C. If you are in compliance with your obligations under this Agreement and all of the Franchise Agreements between you (including any affiliate of yours) and us, then we shall not establish, nor license anyone other than you to establish, a Restaurant in the Development Area until the earlier of (i) the termination or expiration of this Agreement, (ii) the opening of the last required Restaurant under the Development Schedule, or (iii) the last date specified in the Development Schedule, except as otherwise provided under Sections 1(D) below.
- D. Notwithstanding Section 1(C) of this Agreement, we (for ourselves and our affiliates) retain the right to:
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- Directly operate, or to grant other persons the right to operate, Lee's Famous Recipe Restaurants at locations outside the Development Area;
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Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, the developer undertakes the obligation to develop and establish the number of Restaurants set forth in the Development Area. This is provided that the developer opens and commences 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 Lees Famous Recipe 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. These are all designed to enhance the reputation and goodwill with the public of establishments operated in accordance with the System. The developer does not have rights to use Lees Famous Recipe's Marks or System until a Franchise Agreement is in place.
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 Development Agreement. Each Lees Famous Recipe Restaurant within the Development Area must be opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in Lees Famous Recipe's separate and then-current form of franchise agreement.