When is the initial franchise fee due to Lee's for a Lees Famous Recipe franchise?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
penalty.
ITEM 7: ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
Single Unit
| Type of expenditure(1) | Amount - Traditional Stand-Alone (New Structure)(2) | Amount - Traditional Stand-Alone (Reimage Existing Structure)(2) | Amount - Streamlined Location(2) | Amount - Non traditional Location(2) | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|---|---|---|
| Initial Franchise Fee(3) | $35,000 | $35,000 | $35,000 | $35,000 | Lump sum | At signing of Franchise Agreement |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–26)
What This Means (2025 FDD)
According to Lee's Famous Recipe's 2025 Franchise Disclosure Document, the initial franchise fee of $35,000 is due at the signing of the Franchise Agreement. This applies to all restaurant types, whether Traditional Stand-Alone (New Structure), Traditional Stand-Alone (Reimage Existing Structure), Streamlined Location, or Non-traditional Location. The fee is payable in a lump sum to Lee's.
This means that a prospective franchisee must have the full $35,000 available when they are ready to finalize the agreement with Lee's Famous Recipe. It is a non-refundable fee, so the franchisee should be certain of their decision before signing. This is a fairly standard practice in the franchise industry, as the initial fee covers Lee's Famous Recipe's initial costs in setting up the franchise and providing initial training and support.
In addition to the initial franchise fee, franchisees should also be aware of other upfront costs, such as the training fee of $5,000 due prior to attending training, and the potential for a Development Fee if pursuing an Area Development Agreement. These fees, along with the initial franchise fee, contribute to the overall initial investment required to start a Lee's Famous Recipe franchise.