What must a Lees Famous Recipe franchisee do if there is any change in the ownership schedule?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time you (if you are an individual), or the Operating Principal (if you are an entity) is not managing the Restaurant, we may immediately appoint a manager to maintain Restaurant operations on your behalf. Our appointment of a manager of the Restaurant does not relieve you of your obligations or constitute a waiver of our right to terminate the Franchise under Section 15 below. We are not liable for any debts, losses, costs or expenses you incur in operating the Restaurant or to any of your creditors for any Products, materials, supplies or services purchased by the Restaurant while it is managed by our appointed manager. We may charge you a management fee equal to three percent (3%) of your Gross Sales for the period in which we appoint a manager and require you to reimburse us for our costs and expenses in providing such services. We may cease to provide such management services at any time.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
Based on the 2025 Lees Famous Recipe Franchise Disclosure Document, if the Operating Principal or the individual franchisee is not managing the Restaurant, Lees Famous Recipe has the right to appoint a manager to oversee the restaurant's operations.
This appointment does not relieve the franchisee of their obligations under the Franchise Agreement, nor does it waive Lees Famous Recipe's right to terminate the franchise. The franchisee remains responsible for all debts, losses, costs, and expenses incurred during the period when the appointed manager is in charge.
Lees Famous Recipe may charge a management fee equal to 3% of the restaurant's gross sales during the period they provide a manager. The franchisee is also responsible for reimbursing Lees Famous Recipe for any costs and expenses related to providing these management services. Lees Famous Recipe retains the right to cease providing these management services at any time.