Is a Lees Famous Recipe franchisee required to remodel their restaurant as a condition of renewal?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Term is 15 years. |
| b. | Renewal or extension of the term | 3 | If you are in good standing, you may renew for an additional 15-year term. |
| Provision | Section in franchise agreement | Summary | |
| ---- | --------------------------------------------------- | -------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| c. | Requirements for franchisee to renew or extend | 3 | Provide advance notice, not be in default within the 24 months preceding the expiration of the initial term, comply with current Franchise Agreement, satisfactorily complete any new/refresher training programs, sign a new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), remodel, provide proof you will maintain possession of the Restaurant premises and remodel the Restaurant as necessary to comply with our then-current standards and specifications, pay a renewal fee, and sign a general release of claims. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, franchisees are required to remodel their restaurant as a condition of renewal. To renew their franchise agreement for an additional 15-year term, a franchisee must meet several requirements.
Among these requirements, the franchisee must provide advance notice of their intent to renew, not be in default within the 24 months preceding the expiration of the initial term, and comply with the current Franchise Agreement. They must also satisfactorily complete any new or refresher training programs and sign a new agreement, which may contain materially different terms and conditions than the original agreement.
Critically, the franchisee must provide proof that they will maintain possession of the restaurant premises and remodel the restaurant as necessary to comply with Lees Famous Recipe's then-current standards and specifications. Additionally, they must pay a renewal fee and sign a general release of claims. This means that a significant investment in remodeling may be necessary to keep the franchise up-to-date and in compliance with the brand's evolving image and operational standards.