What does Lees Famous Recipe grant to qualified third parties?

According to Lees Famous Recipe's 2025 Franchise Disclosure Document, qualified third parties are granted the right to develop a specific number of Lees Famous Recipe restaurants within a defined Development Area. This right is contingent upon strict adherence to the terms outlined in the Area Development Agreement. Each restaurant within the Development Area must be opened and operated using Lees Famous Recipe's Marks and System, following the terms and conditions of the then-current franchise agreement.

This agreement allows developers to become multi-unit operators, benefiting from the franchisor's system and support. The developer's application to open and operate a certain number of restaurants within the Development Area is approved based on the representations made in their application. Adherence to the Area Development Agreement, including the Operations Manual and System standards, is crucial for the successful operation of all Lees Famous Recipe restaurants and the overall System.

It's important to note that this Area Development Agreement does not grant the developer the right to use Lees Famous Recipe's Marks or System until a Franchise Agreement is in place for each specific restaurant. The success of the venture depends on the developer's capabilities as an independent businessperson and their active involvement in the restaurant's daily operations. Lees Famous Recipe does not provide any guarantees regarding the potential success of the business venture.