When must a Lees Famous Recipe franchisee pay the renewal fee to renew their franchise agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You will have the right to enter into a renewal agreement for the Franchise for the Restaurant for one (1) additional term of fifteen (15) years, provided you satisfy the following conditions respecting the renewal term:
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- You have given us written notice at least one hundred and twenty (120) days but no more than three hundred and sixty-five (365) days before the end of the term of this Agreement of your intention to enter into a renewal agreement;
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- Within the twenty-four (24) months immediately preceding the expiration of this Agreement, you have not been in default in the performance of any material obligation, with the definition of "material obligation" being made in our sole discretion, under this Agreement or any other agreement between you and us or any of our affiliates and continue to comply with all of the material provisions of this Agreement and all other agreements between you and us or any of our respective affiliates, including the payment of all monetary obligations you owe to us or our affiliates, and have complied with our material operating and quality standards and procedures;
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- You provide documentation satisfactory to us that you have the right to maintain possession of the Authorized Location during the renewal term described in our then-current franchise agreement and have, at your expense, made such reasonable capital expenditures necessary to remodel, modernize and redecorate the Restaurant and to replace and modernize the décor, supplies, fixtures, signs, and equipment used in operating the Restaurant so that the Restaurant reflects the then-current physical appearance of new Lee's Famous Recipe Restaurants, or can secure a new location within the Designated Territory to which we have consented (such consent not to be unreasonably withheld) and agree to make all required improvements to the new Restaurant premises and install all required fixtures and equipment in compliance with our then-current standards and specifications for new Lee's Famous Recipe Restaurants;
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Both a Principal Owner we approve and the Operating Principal complete, to our satisfaction, any new training and refresher training as we may reasonably require. You are responsible for travel, living and compensation costs of attendees;
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
The 2025 Lees Famous Recipe Franchise Disclosure Document outlines the conditions for renewing a franchise agreement, but it does not specify when the renewal fee must be paid. To renew the franchise for an additional 15-year term, the franchisee must meet several conditions. These include providing written notice of intent to renew between 120 and 365 days before the current agreement expires, remaining compliant with all material obligations and standards, and demonstrating the right to maintain possession of the authorized location.
Additionally, the franchisee must complete any required new or refresher training to Lees Famous Recipe's satisfaction. The FDD states that the franchisee is responsible for covering the travel, living, and compensation costs associated with this training. The franchisee must also execute the then-current form of franchise agreement.
Because the FDD does not specify when the renewal fee is due, a prospective franchisee should ask Lees Famous Recipe for clarification on the exact payment schedule and any other associated costs or requirements for renewal to fully understand the financial obligations involved.