Where can I find the 'Development Period' details for a Lees Famous Recipe franchise?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
Guaranty.
11. CONDITIONS TO FUTURE DEVELOPMENT.
You recognize and acknowledge that this Agreement requires you to open Lee's Famous Recipe Restaurants in the future pursuant to the Development Schedule. You further acknowledge that the estimated expenses and investment requirements set forth in Items 6 and 7 of our Franchise Disclosure Document are subject to increase over time, and that future Lee's Famous Recipe Restaurants likely will involve greater initial investment and operating capital requirements than those stated in the Franchise Disclosure Document provided to you prior to the execution of this Agreement. You must execute all the Franchise Agreements and open all of the Lee's Famous Recipe Restaurants in accordance with the dates set forth on the Development Schedule, regardless of (i) the requirement of a greater investment, (ii) your financial condition or the performance of prior Lee's Famous Recipe Restaurants, or (iii) any other circumstances, financial or otherwise. The foregoing will not be interpreted as imposing any obligation upon us to execute the Franchise Agreements under this Agreement if you have not complied with each and every required condition to obtain such Franchise Agreements including, but not limited to, your satisfaction of our then-current requirements for franchisees. We have entered into this Agreement based, in part, on your current financial condition and our assessment of your ability to meet Franchisor's financial requirements. You further acknowledge that operating Lee's Famous Recipe Restaurants and meeting our re-equipment, remodeling and other obligations will require significant capital. You and your affiliates must at all times maintain reasonably adequate financial resources, taking into account current resources, reasonably projected future cash flows, and reasonable assumptions related to financing, to meet our required capital and operational expenses under this Agreement and the Franchise Agreements. You must promptly provide such financial information related to you and your affiliates as required by the Franchise
Agreements and as we may reasonably request, including, but not limited to, financial statements, debt agreements (and an accounting of your compliance with such agreements), and historical and projected cash flows and expenses.
12. NO RIGHT TO USE THE MARKS.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, details regarding the 'Development Period' can be found within the context of the Area Development Agreement. Specifically, Item 23 discusses various aspects of this agreement, including the franchisee's obligations to adhere to the Development Schedule. The Development Schedule outlines the required dates for opening Lees Famous Recipe restaurants. Failure to meet these obligations within a single Development Period can result in the termination of the agreement if the default is not cured within 30 days of notice.
The FDD also mentions that Lees Famous Recipe may modify the franchisee's territorial rights or reduce the number of restaurants they are allowed to develop if the Development Schedule is not followed. The franchisee is responsible for submitting site approval forms and data, including financial information and evidence of favorable prospects for obtaining the site. However, the franchisor's consent of a site does not guarantee its suitability or success.
Prospective franchisees should carefully review the Development Schedule and understand the financial and operational commitments required to meet the development obligations. It is crucial to assess one's financial capabilities and ability to manage multiple restaurant openings within the specified timeframes. Franchisees should also be aware of the potential consequences of failing to meet these obligations, including the loss of territorial rights or termination of the agreement. The initial franchise fee is credited $17,500 against the payment of the Initial Franchise Fee due for the second and each subsequent Restaurant developed according to the Development Schedule.
It is important for potential franchisees to discuss the Development Schedule in detail with Lees Famous Recipe to fully understand the expectations and requirements. This includes clarifying the criteria for site approval, the level of support provided during the development period, and the potential flexibility in the schedule. Understanding these factors is essential for making an informed decision about investing in a Lees Famous Recipe franchise.