Does the Franchise Agreement for Lees Famous Recipe grant the right to use the Company's Marks?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
N | 40 | | 18. | DISPUTE RESOLUTION | 40 | | 19. | ENFORCEMENT | 41 | | 20. | NOTICES | 43 | | 21. | ACKNOWLEDGEMENTS | 44 | | | | |
EXHIBITS
- A RESTAURANT LOCATION AND DESIGNATED TERRITORY
- B RESTAURANT LOCATION GENERAL AREA
- C RESTAURANT LEASE ADDENDUM
- D GUARANTY AND ASSUMPTION OF OBLIGATIONS
- E AUTHORIZATION AGREEMENT FOR PRE-AUTHORIZED PAYMENTS
- F FORM CONFIDENTIALITY AGREEMENT
- G AUTHORIZATION TO RELEASE FINANCIAL REPORTS
- H LIST OF OWNERS
LEE'S FAMOUS RECIPE® FRANCHISE AGREEMENT
| THIS FRANCHISE AGREEMENT ("Agreement") is made and entered into this day |
|---|
| of, 20, (the "Effective Date") between Lee's Franchisor LLC, a Delaware |
| limited liability company, with a principal place of business at 1270 N. Eglin Parkway, Suite C-14, |
| Shalimar, Florida 32579 ("we" or "us"), and, a |
| [corporation / limited liability company / partnership] with a principal |
| place of business at ("you"). |
| INTRODUCTION |
| A. |
| We have developed and own a System (as defined below) relating to the development and |
| operation of quick service restaurants that sell chicken, biscuits, and other approved food and beverage |
| products sold by Lee's Famous Recipe Restaurants. |
| B. |
| We own the "Lee's Famous Recipe®," "Famous Recipe®," and "Lee's: Famous for |
| Chicken®" service marks, and other related trademarks and service marks as we periodically may modify |
| (the "Marks") used in operating the System. |
| C. |
| We grant qualified persons the right to develop, own and operate a Franchised Business |
| (as defined below) at a specific location. |
| D. |
| You desire to obtain the right to develop and operate a Restaurant using the System at a |
| specific location. |
| AGREEMENTS |
| In consideration of the mutual covenants and agreements stated below, the parties agree as follows: |
| 1. |
| DEFINITIONS |
| A. |
| "Annual Conference" means |
| any annual franchise conference that we sponsor or |
| designate. |
| B. |
| "Authorized Location" means the location of your Restaurant that we review and approve |
| in writing. |
| C. |
| "Authorizing Documents" means your articles of incorporation, bylaws, operating |
| agreement or other organizational documents. |
| D. |
| "Brand Cooperative Advertising Fund" or "Fund" has the meaning given to it in Section |
| 5(A) of this Agreement. |
| E. |
| "Brand Cooperative Advertising Fund Fee" has the meaning given to it in Section 4(C) of |
F.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Franchise Agreement for Lee's Famous Recipe does grant franchisees the right to use the company's Marks. The agreement specifies that Lee's Famous Recipe owns the service marks "Lee's Famous Recipe®," "Famous Recipe®," and "Lee's: Famous for Chicken®," along with other related trademarks and service marks, which they may periodically modify. Lee's Famous Recipe grants qualified individuals the right to develop, own, and operate a franchised business at a specific location using their system.
However, upon termination or expiration of the Franchise Agreement, the franchisee's right to use the "Lee's Famous Recipe" name and other Marks immediately terminates. The franchisee must then remove all signs and materials bearing the Marks; failure to do so allows Lee's Famous Recipe to remove them at the franchisee's expense.
This highlights the importance of adhering to the terms of the franchise agreement and understanding the conditions under which the rights to use the brand's intellectual property can be revoked. Prospective franchisees should be aware that the right to use the Marks is contingent upon maintaining a valid franchise agreement and ceases upon termination or expiration.