Which items in the Lees Famous Recipe Disclosure Document relate to pre-opening purchases and leases?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
ITEM 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as disclosed below, we are not required to provide you with any assistance:
Preopening Obligations
Before you open your Restaurant, we will satisfy the following obligations under the Franchise Agreement, or if appropriate the Area Development Agreement.
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- We will designate a territory for you to develop the Restaurant(s) (the "Designated Territory").
You must find an Authorized Location for your Lee's Famous Recipe Restaurant within the Designated Territory.
We grant each franchise for a specific location only.
We may require that the Authorized Location that you secure be leased directly to us or our affiliate under a form of lease satisfactory to us and subleased to you under the standard sublease then used by us for that purpose. (Franchise Agreement – Section 6)
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- We reserve the right to require that you submit to us materials and information related to the proposed site, including a description of the proposed location, a feasibility study (including, without limitation, demographic data, photographs, maps, artists' renderings, site plans, a copy of the lease, if applicable, and documentation indicating your prospects to acquire the Authorized Location), and such other information related to the development of the Authorized Location as we reasonably request (the "Development Materials").
If we require you to submit such Development Materials, we will review those materials and use them as a basis for approving or denying the proposed site that you submit to us for review.
Our representatives will examine the proposed location and consult with you, based upon our experience and a study of population, traffic count and information concerning income level of residents and housing costs and any other information available to us relative to the proposed location.
While we offer counseling in site selection and have the right to accept or reject all sites, we do not guarantee the suitability or success of the accepted site.
We will notify you in writing within 30 days after we receive your complete site report and other materials we request whether the proposed site satisfies our site selection criteria.
If we reject the proposed site, you may not proceed at the rejected site but must try to locate an acceptable site within the designated territory of your Franchise Agreement.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, Item 11 discusses pre-opening obligations related to site selection and potential lease arrangements. Specifically, Lees Famous Recipe requires franchisees to find an authorized location within a designated territory. The franchisor may also require that the location be leased directly to them or an affiliate and then subleased to the franchisee.
Lees Famous Recipe reserves the right to have franchisees submit materials related to the proposed site, including a description, feasibility study, photographs, maps, renderings, site plans, and a copy of the lease if applicable. These "Development Materials" are used by Lees Famous Recipe to either approve or deny the proposed site. The franchisor's representatives will examine the location and consult with the franchisee, considering factors such as population, traffic count, and income levels.
While Lees Famous Recipe offers counseling in site selection and has the right to accept or reject sites, they do not guarantee the suitability or success of the location. The franchisee will be notified in writing within 30 days of submitting a complete site report whether the proposed site meets the franchisor's criteria. If a site is rejected, the franchisee must find another acceptable site within their designated territory.