What is the estimated cost of purchasing the POS 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 cer
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 POS (Point of Sale) system ranges from $30,000 to $40,000. The POS system is essential for managing the daily operations of the business. It handles customer orders, tracks inventory, food costs, labor, and other financial data. The system must also be capable of providing detailed information in both dollar amounts and percentages. Menu items and specific recipes need to be loaded into the system to generate reports on ideal usage, actual usage, and ideal food costs. Currently, the only approved POS system is Focus POS.
This is a significant initial investment for a prospective Lees Famous Recipe franchisee. The POS system is not just a cash register; it's a comprehensive management tool that integrates various aspects of the business. The franchisor also requires franchisees to purchase certain back-office software from their 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.
In addition to the initial purchase price, Lees Famous Recipe franchisees should also be aware of ongoing costs associated with the POS system. The FDD states that the estimated annual costs of required maintenance, updating, upgrading, or support contracts will be between $8,000 and $15,000 for the POS System. Furthermore, Lees Famous Recipe may independently access and retrieve financial information and customer data produced by the POS system, and the franchisee will be required to subscribe to an approved polling system at an estimated annual cost of $1,500 to $3,500 per year. These factors should be carefully considered when evaluating the overall financial commitment of a Lees Famous Recipe franchise.