Does Lees Famous Recipe guarantee the suitability or success of an accepted site for a Lees Famous Recipe restaurant?

According to the 2025 FDD, Lees Famous Recipe does not guarantee the suitability or success of an accepted site for a restaurant. While Lees Famous Recipe offers counseling in site selection and retains the right to accept or reject proposed locations, this does not constitute a guarantee of the site's potential performance. The FDD states that the franchisee must find an authorized location within their designated territory.

Lees Famous Recipe representatives will examine the proposed location and consult with the franchisee, using their experience and available information such as population, traffic count, income levels, and housing costs to assess the site. The franchisee is required to submit materials and information related to the proposed site, including a description of the location, a feasibility study with demographic data, photographs, maps, site plans, and a copy of the lease, if applicable. Lees Famous Recipe will review these materials as the basis for approving or denying the proposed site.

This means that while Lees Famous Recipe provides guidance and approval in the site selection process, the ultimate responsibility for the site's success rests with the franchisee. The franchisee bears the risk that the accepted site may not perform as expected, even after the franchisor's review and approval. This is a common arrangement in franchising, as local market conditions and the franchisee's operational skills also significantly impact a restaurant's success.

Prospective franchisees should carefully consider this lack of guarantee and conduct their own due diligence on any proposed site, including independent market research and financial projections, to assess the potential risks and rewards before committing to a location. Understanding the local market and diligently evaluating the site's potential are crucial steps for any new Lees Famous Recipe franchisee.