What is the 'Development Area' in the context of the Lees Famous Recipe Area Development Agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
C. "Development Area" means the geographic area, identified in Exhibit A to this Agreement, where we grant you the right to develop a certain number of Lee's Famous Recipe Restaurants.
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.
(as depicted on the attached map) provided that the location of any Lee's Famous Recipe Restaurant in operation or under lease, construction, or other commitment to open in the Development Area as of the Effective Date, and, with respect to any such franchised Lee's Famous Recipe Restaurant, any protected area then granted by us under the applicable Lee's Famous Recipe franchise agreement, all or part of which is in the Development Area, are expressly excluded from the Development Area. Any political boundaries included in the description of the Development Area will be considered fixed as of the Effective Date and will not change notwithstanding a political reorganization or a change in those boundaries. Unless otherwise specified, all street boundaries will be deemed to end at the street center line unless otherwise specified.
Upon expiration or termination of this Agreement for any reason, you must immediately cease to develop new Restaurants in the Development Area and we will be entitled to grant others the right to establish and operate Lee's Famous Recipe Restaurants in the Development Area.
You acknowledge and agree that, upon such expiration or termination, you will not have any territorial rights other than those that might be granted in connection with a "Designated Territory" associated with a Restaurant that you have opened and commenced operating as of the date this Agreement is terminated or expires (if and as such rights are granted by us under the respective Franchise Agreement(s) that you entered into for such Restaurant(s)).
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the Development Area refers to a specific geographic area where the franchisor grants the developer the right to open a certain number of Lees Famous Recipe restaurants. This area is formally identified in Exhibit A of the Development Agreement.
The Development Area does not include Non-Traditional Venues, such as those in airports or universities, even if these are located within the geographic boundaries of the Development Area. Lees Famous Recipe retains all franchise and development rights for these Non-Traditional Venues. The franchisor also retains the right to operate Lees Famous Recipe restaurants outside the Development Area, and to promote and sell products and services through other channels of distribution.
Lees Famous Recipe will not establish or license anyone other than the developer to establish a Restaurant in the Development Area if the developer is meeting their obligations, until the agreement terminates, the last required restaurant opens, or the date specified in the Development Schedule. However, the Development Area excludes any existing Lees Famous Recipe Restaurant locations or protected areas granted under existing franchise agreements as of the effective date. Any political boundaries included in the description of the Development Area will be considered fixed as of the Effective Date and will not change notwithstanding a political reorganization or a change in those boundaries. Unless otherwise specified, all street boundaries will be deemed to end at the street center line unless otherwise specified.
Upon termination or expiration of the Development Agreement, the developer must immediately cease developing new restaurants in the Development Area, and Lees Famous Recipe is then entitled to grant others the right to establish and operate restaurants in that area. The developer will not have any territorial rights other than those granted in connection with a Designated Territory associated with a Restaurant that they have opened and commenced operating as of the date this Agreement is terminated or expires, if and as such rights are granted by us under the respective Franchise Agreement(s) that you entered into for such Restaurant(s).