What fee must a Lees Famous Recipe franchisee pay to renew their franchise agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Term. The term of this Agreement will be for fifteen (15) years commencing on the Effective Date.
- B. Renewal Agreement. You will have the right to enter into a renewal agreement for the Franchise for the Restaurant for one (1) additional term of fifteen (15) years, provided you satisfy the following conditions respecting the renewal term:
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- You have given us written notice at least one hundred and twenty (120) days but no more than three hundred and sixty-five (365) days before the end of the term of this Agreement of your intention to enter into a renewal agreement;
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- Within the twenty-four (24) months immediately preceding the expiration of this Agreement, you have not been in default in the performance of any material obligation, with the definition of "material obligation" being made in our sole discretion, under this Agreement or any other agreement between you and us or any of our affiliates and continue to comply with all of the material provisions of this Agreement and all other agreements between you and us or any of our respective affiliates, including the payment of all monetary obligations you owe to us or our affiliates, and have complied with our material operating and quality standards and procedures;
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- 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;
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Both a Principal Owner we approve and the Operating Principal complete, to our satisfaction, any new training and refresher training as we may reasonably require. You are responsible for travel, living and compensation costs of attendees;
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Lees Famous Recipe specifies the conditions for renewing the franchise agreement for an additional 15-year term. While it outlines several conditions that must be met to qualify for renewal, it does not explicitly state a specific renewal fee.
To renew the franchise agreement with Lees Famous Recipe, a franchisee must provide written notice of their intent to renew within a specified timeframe, which is between 120 and 365 days before the current agreement expires. The franchisee must also not be in default of any material obligations within the 24 months preceding the expiration and must continue to comply with all material provisions of the agreement. This includes meeting operating and quality standards, as well as fulfilling all monetary obligations to Lees Famous Recipe and its affiliates.
Additionally, the franchisee needs to demonstrate that they can maintain possession of the authorized location during the renewal term and must make necessary capital expenditures to remodel, modernize, and redecorate the restaurant to reflect the current standards of new Lees Famous Recipe locations. Alternatively, the franchisee can secure a new location within the designated territory, subject to approval from Lees Famous Recipe, and make all required improvements to meet the new restaurant standards. Franchisees must also ensure that both an approved Principal Owner and the Operating Principal complete any required new or refresher training to the satisfaction of Lees Famous Recipe, covering their own travel, living, and compensation costs.
Because the FDD does not specify a renewal fee, prospective franchisees should clarify the existence and amount of any such fee with Lees Famous Recipe directly. Understanding all costs associated with renewing the franchise agreement is crucial for long-term financial planning.