What is the estimated cost of purchasing the Computer System for a Lees Famous Recipe franchise?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
cific recipes must be able to be loaded into the system in order to obtain an "ideal usage" report along with an "actual usage" report and an "ideal food cost" report. (Franchise Agreement – Section 6(G))
We estimate the cost of purchasing the Computer System to be between $1,000 and $2,000 and we estimate the cost of purchasing the POS System to be between $30,000 and $40,000. We currently require you to purchase certain back-office software from our approved vendor, which currently costs between $100 and $200 per unit per month, and includes software for inventory management, food cost management, and other features. We currently do not require you to purchase other components of the computer system from an approved vendor, but reserve the
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–47)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the estimated cost to purchase the Computer System ranges from $1,000 to $2,000. In addition to the Computer System, franchisees must purchase or lease a Point of Sale (POS) system, with costs estimated between $30,000 and $40,000. The POS system is critical for managing daily operations, customer orders, inventory, food costs, labor, and financial data. Franchisees are also required to purchase specific back-office software from an approved vendor, which currently costs between $100 and $200 per unit per month, covering inventory and food cost management.
Lees Famous Recipe may revise the specifications for the Computer System and Proprietary Software periodically, and franchisees are obligated to upgrade or replace their systems accordingly. The FDD places no limitations on the frequency and cost of these required upgrades. While the document mentions potential financing options for the Computer System through designated suppliers, it does not elaborate on the terms or availability of such financing.
Furthermore, Lees Famous Recipe is not obligated to provide ongoing maintenance, repairs, upgrades, or support for the Computer System or POS system. However, the FDD estimates annual costs for required maintenance, updating, upgrading, or support contracts to be between $1,500 and $3,500 for the Computer System and between $8,000 and $15,000 for the POS System. Franchisees also bear the cost of subscribing to an approved polling system designated by Lees Famous Recipe, estimated at $1,500 to $3,500 per year.
Prospective franchisees should consider these ongoing technology expenses and the potential for mandatory upgrades when evaluating the overall investment. It is important to clarify with Lees Famous Recipe the typical lifespan of the Computer System and POS system, the frequency and potential costs of required upgrades, and the specific terms and conditions of any available financing options to accurately assess the financial implications of these technology requirements.