Is a Lees Famous Recipe franchisee required to sign a new agreement upon 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, a franchisee is required to sign a new agreement upon renewal if they are in good standing and wish to renew their franchise for an additional 15-year term. The original franchise term is 15 years.
The new agreement that a Lees Famous Recipe franchisee must sign may contain materially different terms and conditions than the original Franchise Agreement. In addition to signing a new agreement, the franchisee must provide advance notice of renewal, not be in default within the 24 months preceding the expiration of the initial term, comply with the current Franchise Agreement, satisfactorily complete any new or refresher training programs, remodel the restaurant to comply with then-current standards, provide proof of maintaining possession of the restaurant premises, pay a renewal fee, and sign a general release of claims.
This requirement to sign a new agreement with potentially different terms is a significant point for prospective franchisees. It means that the terms under which they operate their Lees Famous Recipe franchise could change substantially upon renewal. Franchisees need to be prepared for potential changes in fees, operational requirements, and other obligations, and should carefully evaluate the new agreement before committing to another term. They should also factor in the costs associated with remodeling and any required training programs when considering renewal.