What is the length of the initial franchise term for a Lees Famous Recipe franchise?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Term is 15 years. |
| b. | Renewal or extension of the term | 3 | If you are in good standing, you may renew for an additional 15-year term. |
| Provision | Section in franchise agreement | Summary | |
| ---- | --------------------------------------------------- | -------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| c. | Requirements for franchisee to renew or extend | 3 | Provide advance notice, not be in default within the 24 months preceding the expiration of the initial term, comply with current Franchise Agreement, satisfactorily complete any new/refresher training programs, sign a new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), remodel, provide proof you will maintain possession of the Restaurant premises and remodel the Restaurant as necessary to comply with our then-current standards and specifications, pay a renewal fee, and sign a general release of claims. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the initial franchise term is 15 years. This means that a new franchisee will operate their Lees Famous Recipe restaurant under the franchise agreement for a period of 15 years before needing to renew the agreement.
Lees Famous Recipe offers an opportunity for renewal at the end of the initial 15-year term. If the franchisee is in good standing with Lees Famous Recipe, they have the option to renew the franchise agreement for an additional 15-year term.
To renew the franchise agreement with Lees Famous Recipe, a franchisee must meet several requirements. These include providing advance notice of their intent to renew, not being in default of the franchise agreement within the 24 months preceding the expiration of the initial term, complying with the current Franchise Agreement, completing any new or refresher training programs, signing a new agreement (which may contain materially different terms and conditions than the original Franchise Agreement), remodeling the restaurant to comply with current standards, providing proof of continued possession of the restaurant premises, paying a renewal fee, and signing a general release of claims. These conditions are fairly standard in the franchise industry, ensuring that franchisees remain compliant with the brand's standards and practices.