What is the 'Development Period' as defined in the Lees Famous Recipe Area Development Agreement?

According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the 'Development Period' is defined in Exhibit B of the Area Development Agreement. This period dictates the timeframe in which a developer is expected to open a certain number of Lees Famous Recipe restaurants within a specific geographic area. The 'Development Schedule' is the mandatory schedule that is also set forth in Exhibit B of the agreement.

For a prospective franchisee, understanding the Development Period and Schedule is crucial. It sets the expectations for how quickly they must establish new locations. Failing to adhere to the Development Schedule can lead to termination of the agreement if the franchisee does not meet their development obligations for any single Development Period and fails to cure the default within thirty days of receiving notice.

It is important to note that Lees Famous Recipe retains certain rights within the Development Area, including the right to operate or grant others the right to operate restaurants at Non-Traditional Venues. They can also promote and sell products and services through various channels of distribution, which could potentially impact a franchisee's business within their designated area. Therefore, a franchisee should carefully review Exhibit B to fully understand the Development Period and Schedule, as well as any potential limitations or exceptions.