factual

Where can I find the 'Development Schedule' details for a Lees Famous Recipe franchise?

Lees_Famous_Recipe Franchise · 2025 FDD

Answer from 2025 FDD Document

"System" means our system relating to the franchising of Lee's Famous Recipe Restaurants that sell chicken and other approved food, beverage and other products sold, which System includes site

evaluation assistance, equipment selection and layouts, merchandising, advertising, sales and promotional techniques, operations training, and other matters relating to the operation and promotion of such restaurants, all of which are designed to enhance the reputation and goodwill with the public of establishments operated in accordance with the System.

2. DEVELOPMENT AREA; DEVELOPMENT SCHEDULE; AND RESERVATION OF RIGHTS.

  • A. Subject to the terms and conditions set forth herein, we grant you the right, and Developer undertakes the obligation, to develop and establish the number of Restaurants set forth in the Development Area, provided you open and commence operations of such Restaurants in strict accordance with the Development Schedule.
  • B. You also understand and agree that the Development Area does not include, and we reserve all franchise and development rights respecting any Non-Traditional Venues located within the geographic boundaries of the Development Area.
  • C. If you are in compliance with your obligations under this Agreement and all of the Franchise Agreements between you (including any affiliate of yours) and us, then we shall not establish, nor license anyone other than you to establish, a Restaurant in the Development Area until the earlier of (i) the termination or expiration of this Agreement, (ii) the opening of the last required Restaurant under the Development Schedule, or (iii) the last date specified in the Development Schedule, except as otherwise provided under Sections 1(D) below.
  • D. Notwithstanding Section 1(C) of this Agreement, we (for ourselves and our affiliates) retain the right to:
      1. Directly operate, or to grant other persons the right to operate, Lee's Famous Recipe Restaurants at locations outside the Development Area;
      1. Directly operate, or to grant other persons the right to operate, Lee's Famous Recipe Restaurants at Non-Traditional Venues within and outside the Development Area;
      1. Promote, sell and distribute anywhere, including through restaurants and other establishments, products and services authorized for sale at Lee's Famous Recipe Restaurants under trademarks and service marks other than the Marks through similar or dissimilar channels of distribution;
      1. Promote, sell, distribute and license products and services authorized for sale at Lee's Famous Recipe Restaurants as well as ancillary products and services such as its sauces and other food products, beverages, clothing, glassware and memorabilia under the Marks through dissimilar channels of distribution (i.e., other than the operation of full-service Lee's Famous Recipe Restaurants), including direct mail, wholesale activities, grocery stores, convenience stores, retail stores, and by electronic means such as the Internet, and other permanent, temporary, or seasonal food service facilities, carts, kiosks, or other mobile food vehicles, such as food trucks, and pursuant to conditions we deem appropriate within and outside the Development Area;
      1. Acquire businesses that are the same as or similar to the Restaurant or other Lee's Famous Recipe Restaurants and operate such businesses regardless of whether such businesses are located within or outside the Development Area, and to be acquired by any third party which operates businesses that are the same as or similar to the Restaurant or other Lee's Famous Recipe

Restaurants regardless of whether such businesses are located within or outside the Development Area; and

    1. Promote the System and the Restaurants generally, including on the Internet (or any other existing or future form of electronic commerce) and to create, operate, maintain and modify, or discontinue the use of websites using the Marks; and
      1. All other rights not explicitly granted to you under this Agreement.

3. DEVELOPMENT FEE; INITIAL FRANCHISE FEES.

  • A. You shall pay us a nonrefundable development fee contemporaneously with the execution of the Area Development Agreement. The development fee is equal to the sum of fifty percent (50%) of the initial franchise fees due under the franchise agreements for each additional Restaurant (beyond your first Restaurant) that you agree to develop under the Development Schedule (the "Development Fee") as set forth in Exhibit B.

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 Schedule' can be found within the Area Development Agreement. The franchisee is obligated to develop and establish the number of restaurants within a specific Development Area, and must open and commence operations in accordance with the Development Schedule. The Development Schedule outlines the dates by which the franchisee must execute Franchise Agreements and open Lees Famous Recipe Restaurants.

The FDD specifies that failure to comply with the Development Schedule may result in the termination or modification of the franchisee's territorial rights, reduction or modification of the Development Area size, or a reduction in the number of restaurants the franchisee is authorized to develop. The franchisee is required to pay a nonrefundable development fee, which is a percentage of the initial franchise fees for each additional restaurant beyond the first, as outlined in Exhibit B. A portion of this development fee will be credited towards the initial franchise fee for subsequent restaurants developed according to the Development Schedule, specifically $17,500 for the second and each subsequent restaurant.

The franchisee must also submit site approval forms and data, including site plans and financial information, for each restaurant to be developed. Lees Famous Recipe's consent of a site does not constitute a guarantee of the site's suitability, but rather an indication that the site meets the franchisor's minimum criteria at the time of evaluation. The franchisee is responsible for their own independent investigation of the site's suitability. The Development Area does not include Non-Traditional Venues, and Lees Famous Recipe reserves all franchise and development rights for these venues within the geographic boundaries of the Development Area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.