What is a franchisee's obligation regarding the condition and appearance of a Lees Famous Recipe Restaurant, including parking areas and grounds?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Condition and Appearance of Restaurant/Remodeling of Restaurant. You agree to maintain the condition and appearance of the Restaurant (including adjacent parking areas and grounds), and refurbish and modify its layout, décor and general theme, as we may require to maintain the condition, appearance, efficient operation, ambience and overall image of Lee's Famous Recipe Restaurants, as we may modify. You will replace worn out or obsolete fixtures, equipment, furniture, or signs, repair the interior and exterior of the Restaurant, adjacent parking areas and grounds, and periodically clean and redecorate the Restaurant. If at any time in our reasonable judgment, the general state of repair, appearance or cleanliness of the Restaurant premises (including parking areas and grounds) or its fixtures, equipment, furniture or signs do not meet our then-current standards, we will so notify you, specifying the action you must take to correct the deficiency. If you fail, within ten (10) days after receipt of notice, to commence action and continue in good faith and with due diligence, to undertake and complete any required maintenance or refurbishing, we may (in addition to our rights under Section 15 below) enter the Restaurant premises and correct the deficiencies on your behalf, and at your expense.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 FDD, Lees Famous Recipe franchisees must maintain the condition and appearance of their restaurant, including adjacent parking areas and grounds. This encompasses refurbishing and modifying the layout, décor, and general theme as required by Lees Famous Recipe to maintain the condition, appearance, efficient operation, ambiance, and overall image of the restaurants. Franchisees are responsible for replacing worn-out or obsolete fixtures, equipment, furniture, or signs, as well as repairing the interior and exterior of the restaurant, parking areas, and grounds, and periodically cleaning and redecorating the restaurant.
If Lees Famous Recipe determines that the general state of repair, appearance, or cleanliness of the restaurant premises (including parking areas and grounds) or its fixtures, equipment, furniture, or signs does not meet their standards, they will notify the franchisee, specifying the necessary corrective actions. The franchisee must commence action within ten days of receiving notice and continue diligently to complete the required maintenance or refurbishing.
Should a franchisee fail to take the required actions within the specified timeframe, Lees Famous Recipe reserves the right to enter the restaurant premises and correct the deficiencies on behalf of the franchisee, at the franchisee's expense. This underscores the importance of adhering to Lees Famous Recipe's standards to avoid potential intervention and associated costs. Franchisees should budget for regular maintenance and updates to comply with these requirements.