What happens if a Lees Famous Recipe franchisee does not meet the standards for the restaurant's condition?
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 Lees Famous Recipe's 2025 Franchise Disclosure Document, franchisees are responsible for maintaining the condition and appearance of their restaurant, including parking areas and grounds. This includes refurbishing, modifying the layout, décor, and general theme to keep up with the brand's image. Franchisees must replace worn-out items, repair the interior and exterior, and periodically clean and redecorate.
If Lees Famous Recipe determines that a restaurant's condition does not meet their standards, they will notify the franchisee, specifying the necessary corrective actions. The franchisee then has ten days to begin taking action to correct the deficiency and continue working diligently until the work is completed.
If the franchisee fails to start the required maintenance or refurbishing within the ten-day period and continue the work, Lees Famous Recipe has the right to enter the restaurant premises and correct the deficiencies themselves, at the franchisee's expense. This is in addition to any other rights Lees Famous Recipe has under Section 15 of the franchise agreement, which likely covers termination or other penalties for non-compliance.