What is the initial term length for a Lees Famous Recipe franchise agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
3. TERM OF FRANCHISE; RENEWAL RIGHTS
A. Term. The term of this Agreement will be for fifteen (15) years commencing on the Effective Date.
B. Renewal Agreement. You will have the right to enter into a renewal agreement for the Franchise for the Restaurant for one (1) additional term of fifteen (15) years, provided you satisfy the following conditions respecting the renewal term:
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- You have given us written notice at least one hundred and twenty (120) days but no more than three hundred and sixty-five (365) days before the end of the term of this Agreement of your intention to enter into a renewal agreement;
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- Within the twenty-four (24) months immediately preceding the expiration of this Agreement, you have not been in default in the performance of any material obligation, with the definition of "material obligation" being made in our sole discretion, under this Agreement or any other agreement between you and us or any of our affiliates and continue to comply with all of the material provisions of this Agreement and all other agreements between you and us or any of our respective affiliates, including the payment of all monetary obligations you owe to us or our affiliates, and have complied with our material operating and quality standards and procedures;
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- You provide documentation satisfactory to us that you have the right to maintain possession of the Authorized Location during the renewal term described in our then-current franchise agreement and have, at your expense, made such reasonable capital expenditures necessary to remodel, modernize and redecorate the Restaurant and to replace and modernize the décor, supplies, fixtures, signs, and equipment used in operating the Restaurant so that the Restaurant reflects the then-current physical appearance of new Lee's Famous Recipe Restaurants, or can secure a new location within the Designated Territory to which we have consented (such consent not to be unreasonably withheld) and agree to make all required improvements to the new Restaurant premises and install all required fixtures and equipment in compliance with our then-current standards and specifications for new Lee's Famous Recipe Restaurants;
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Both a Principal Owner we approve and the Operating Principal complete, to our satisfaction, any new training and refresher training as we may reasonably require.
You are responsible for travel, living and compensation costs of attendees;
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the initial term of the franchise agreement is fifteen years, beginning on the effective date of the agreement. This means a franchisee can operate their Lees Famous Recipe restaurant for 15 years before needing to renew the agreement.
Lees Famous Recipe offers franchisees the option to renew their franchise agreement for one additional term of fifteen years, provided certain conditions are met. These conditions include providing written notice of intent to renew within a specified timeframe (120 to 365 days before the end of the initial term), remaining in compliance with all material obligations and standards, and demonstrating the right to maintain possession of the authorized location.
To renew, franchisees must also complete any required new or refresher training to the satisfaction of Lees Famous Recipe. Furthermore, franchisees may need to make capital expenditures to remodel and modernize the restaurant to reflect the current brand standards, or secure a new location that meets Lees Famous Recipe's approval. These renewal conditions ensure that franchisees continue to meet the brand's standards and maintain the quality of the Lees Famous Recipe system.