Are fees imposed by third parties refundable when opening a Lees Famous Recipe restaurant?

According to the 2025 Lees Famous Recipe Franchise Disclosure Document, whether fees imposed by third parties are refundable depends on the agreements a franchisee negotiates with those third parties. This means Lees Famous Recipe does not control the refundability of fees paid to outside vendors or service providers.

For a prospective franchisee, this indicates the importance of carefully reviewing contracts with third-party vendors (such as contractors, suppliers, and landlords) to understand the conditions under which fees may be refundable. This is especially relevant for expenditures like site work, building improvements, equipment, and signage, which can range from $0 to $1,200,000 depending on the restaurant type and location. Understanding the refund policies associated with these potentially large investments is crucial.

It is standard practice in franchising for franchisors to dictate which fees paid directly to them are non-refundable, such as the initial franchise fee. However, the refundability of third-party fees is typically left to the discretion and negotiation of the franchisee. Therefore, a prospective Lees Famous Recipe franchisee should prioritize clear communication and well-defined agreements with all third-party vendors to protect their investment.

Before signing any agreements, a potential Lees Famous Recipe franchisee should consult with a business advisor, attorney, and accountant to fully understand the terms and conditions, including the refund policies, associated with third-party services. This due diligence can help mitigate financial risks and ensure a smoother restaurant opening process.