Can a Lees Famous Recipe franchisee engage in delivery services without approval?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not conduct, engage in, subcontract to third parties, utilize on-line or internet-based delivery scheduling companies or applications, or authorize or permit any person, entity, third party, or technology to engage in, delivery operations at or from the Restaurant, unless such delivery operations or program has been expressly approved, in writing, by us. We may grant or not grant such approval in our sole discretion. We may condition our approval on, among other things, (a) your strict compliance with the Franchise Agreement and the standards and specifications for Restaurant operations set forth in the Operations Manual; and/or (b) your strict compliance with any delivery rules, procedures, requirements or standards that we may establish, such as, obtaining and maintaining additional and specialized insurance, and purchasing (or leasing) and using new or additional equipment and software for ordering, tracking, and reporting on deliveries, implementing a new or modified POS System(s), and utilizing required packaging; and/or (c) your utilization of designated or approved third-party ordering, delivery and/or billing services and/or software; and/or (d) your strict compliance with our standards and requirements for billing, collections and reporting of such services. We may revoke our approval of the above-mentioned delivery operations or programs at any time.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, franchisees are not allowed to conduct, engage in, subcontract to third parties, utilize online or internet-based delivery scheduling companies or applications, or authorize any person or entity to engage in delivery operations without express written approval from Lees Famous Recipe. This restriction applies to all delivery operations at or from the restaurant. Approval may be granted or denied at Lees Famous Recipe's sole discretion.
Lees Famous Recipe may condition its approval on several factors. These include the franchisee's strict compliance with the Franchise Agreement and operational standards, adherence to specific delivery rules and standards established by Lees Famous Recipe (such as obtaining specialized insurance and using specific equipment and software), and the franchisee's utilization of designated or approved third-party ordering, delivery, and billing services. Lees Famous Recipe also retains the right to revoke its approval of delivery operations or programs at any time.
This requirement means that a Lees Famous Recipe franchisee must seek and obtain explicit permission from the franchisor before offering delivery services. Failure to obtain this approval could result in a breach of the franchise agreement. Prospective franchisees should discuss the delivery approval process, including any associated costs, required technologies, and approved third-party vendors, with Lees Famous Recipe to fully understand the requirements and potential limitations.