factual

What documentation must a Lees Famous Recipe franchisee provide to demonstrate their right to maintain possession of the authorized location during the renewal term?

Lees_Famous_Recipe Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. You provide documentation satisfactory to us that you have the right to maintain possession of the Authorized Location during the renewal term described in our then-current franchise agreement and have, at your expense, made such reasonable capital expenditures necessary to remodel, modernize and redecorate the Restaurant and to replace and modernize the décor, supplies, fixtures, signs, and equipment used in operating the Restaurant so that the Restaurant reflects the then-current physical appearance of new Lee's Famous Recipe Restaurants, or can secure a new location within the Designated Territory to which we have consented (such consent not to be unreasonably withheld) and agree to make all required improvements to the new Restaurant premises and install all required fixtures and equipment in compliance with our then-current standards and specifications for new Lee's Famous Recipe Restaurants;

Source: Item 22 — CONTRACTS (FDD pages 69–70)

What This Means (2025 FDD)

According to the 2025 Lees Famous Recipe Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement for an additional 15-year term must provide documentation that satisfies Lees Famous Recipe that they have the right to maintain possession of the authorized location during the renewal term.

This requirement ensures that the franchisee has a secure location for the duration of the renewal term, which is crucial for the continued operation of the Lees Famous Recipe restaurant. The documentation must be satisfactory to Lees Famous Recipe, meaning the franchisor has the discretion to determine if the provided documents adequately demonstrate the franchisee's right to maintain possession. This could include a lease agreement, property deed, or other legal documents that establish the franchisee's right to occupy the premises.

In addition to providing documentation of the right to maintain possession, the franchisee must also make necessary capital expenditures to remodel, modernize, and redecorate the restaurant to reflect the then-current physical appearance of new Lees Famous Recipe restaurants. Alternatively, the franchisee can secure a new location within the Designated Territory, subject to the franchisor's consent, and make all required improvements to the new premises. These requirements ensure that the restaurant remains up-to-date and consistent with the Lees Famous Recipe brand standards.

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.