What is the estimated monthly cost for the required back-office software at Lees Famous Recipe?
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, franchisees are required to purchase certain back-office software from an approved vendor. This software, which includes features for inventory management and food cost management, currently costs between $100 and $200 per unit per month.
This monthly cost is an ongoing expense that franchisees must factor into their operating budget. It's important to note that these fees are paid directly to the approved third-party supplier, not to Lees Famous Recipe itself. This arrangement is common in franchising, where franchisors often outsource specific services or software to specialized vendors.
Prospective franchisees should confirm with Lees Famous Recipe which specific software is required, the exact monthly cost, and the terms of the agreement with the third-party vendor. It would also be prudent to inquire about any potential future changes to the approved vendor or the software requirements, as these could impact the franchisee's costs.