What is the initial franchise fee 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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–26)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the initial franchise fee is $35,000, payable as a lump sum when signing the Franchise Agreement. This fee applies uniformly across all restaurant types, whether Traditional Stand-Alone (New or Reimaged), Streamlined, or Non-Traditional locations. The initial franchise fee grants you the right to develop a Lees Famous Recipe Restaurant.
If you enter into an Area Development Agreement, you must also pay a Development Fee equal to 50% of the initial franchise fees due under the franchise agreements for each additional Restaurant (beyond your first Restaurant) that you agree to develop under the Development Schedule. However, Lees Famous Recipe will credit $17,500 of the Development Fee against the then-current Initial Franchise Fee for the second and each subsequent franchise agreement until the Development Fee is exhausted. A commitment of at least two Restaurants is required to enter into an Area Development Agreement.
It's important to note that all fees paid to Lees Famous Recipe or its affiliates are non-refundable. Prospective franchisees should factor this non-refundable initial fee into their financial planning, understanding that this upfront investment is necessary to secure the rights to operate a Lees Famous Recipe franchise. Franchisees should carefully consider their chosen restaurant model and location type, as these factors will influence other initial investment costs beyond the franchise fee.