Does the Lees Famous Recipe FDD specify any requirements regarding pricing of menu items?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
If we impose such a maximum price on a particular menu item, product, or service, and subject to applicable law, you may not charge a price for such menu item, product, or service, in excess of the maximum price set by us.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, Lees Famous Recipe may impose a maximum price on menu items, products, or services. If Lees Famous Recipe sets a maximum price, franchisees cannot charge more than that price, subject to applicable law.
This means that while franchisees have some control over pricing, Lees Famous Recipe retains the right to set a ceiling on prices. This could impact a franchisee's profit margins if costs increase, as they would be unable to pass those costs on to consumers beyond the set maximum price.
Prospective franchisees should consider how this pricing control might affect their business plan and profitability, especially in areas with high operating costs or fluctuating market prices. It would be prudent to discuss Lees Famous Recipe's pricing strategy and how often these maximum prices are reviewed or adjusted with the franchisor before signing the franchise agreement.