Must a Lees Famous Recipe franchisee pay for future updates and modifications to the Computer System?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You must use the Computer System (including POS System) that we designate for your Restaurant.
The computer hardware component of the Computer System must comply with specifications we develop.
We reserve the right to require the Computer System to be configured as a package unit.
We have the right to designate a single source from which you must purchase the Computer System, any software or hardware components thereof or associated service, and we or our affiliates may be that single source.
You will be required to use and, at our discretion, pay for all future updates and modifications to the Computer System.
We have no obligation to provide any maintenance, repairs, upgrades or updates to the POS System or Computer System.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, franchisees are required to use a designated Computer System, including a POS system, that complies with the franchisor's specifications. Lees Famous Recipe reserves the right to designate a single source for the Computer System and associated services, potentially including themselves or their affiliates.
Importantly, Lees Famous Recipe franchisees are required to use and, at the franchisor's discretion, pay for all future updates and modifications to the Computer System. However, Lees Famous Recipe has no obligation to provide any maintenance, repairs, upgrades, or updates to the POS System or Computer System. This means that while franchisees may be required to pay for updates, Lees Famous Recipe is not obligated to provide them, which could create uncertainty regarding the support and maintenance of the system.
In addition to the Computer System, franchisees must obtain and use Proprietary Software from Lees Famous Recipe or a designated third-party supplier and may be charged a license fee for its use. Franchisees must also pay a Technology Fee for Computer System support and periodic updates to the Proprietary Software. Lees Famous Recipe reserves the right to assign the Computer System and/or Proprietary Software to a third party, potentially requiring franchisees to enter into a separate software license agreement and pay additional fees. This could lead to increased costs and administrative burdens for the franchisee.
Overall, the franchisee bears the responsibility for maintaining and updating the Computer System, including potentially covering the costs for updates and modifications, while Lees Famous Recipe retains significant control over the system's specifications, suppliers, and potential changes. Prospective franchisees should carefully consider these financial and operational implications and seek clarification from Lees Famous Recipe regarding the frequency, cost, and necessity of future updates and modifications to the Computer System.