When are Local Advertising Expenditures due and payable to Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.
Local Advertising Expenditures.** We recommend that you expend at least 1% of Gross Sales weekly on local market advertising, however, we reserve the right to require you spend up to 1% of Gross Sales each week on approved local marketing, exclusive of on-site signs, telephone directory listings, and costs of Products sold at a reduced cost or given away, or for you to pay us that amount, which we will then spend on local market advertising on your behalf in our sole discretion(the "Local Advertising Expenditures").
If we require you to pay us the Local Advertising Expenditures, they will be due and payable on the Payment Date.
At our request, you must provide documentation to us each quarter evidencing your Local Advertising Expenditures.
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, if Lees Famous Recipe requires a franchisee to pay Local Advertising Expenditures to them, these expenditures are due and payable on the Payment Date. The FDD also states that Lees Famous Recipe recommends that franchisees expend at least 1% of Gross Sales weekly on local market advertising. However, Lees Famous Recipe reserves the right to require franchisees to spend up to 1% of Gross Sales each week on approved local marketing, or to pay that amount to Lees Famous Recipe, which they will then spend on local market advertising on the franchisee's behalf.
It is important to note that Lees Famous Recipe may request documentation each quarter evidencing a franchisee's Local Advertising Expenditures. This means that even if a franchisee is directly managing their local advertising, they must still provide proof of these expenditures to Lees Famous Recipe.
Prospective franchisees should clarify with Lees Famous Recipe the specific definition of 'Payment Date' and how it aligns with the weekly gross sales reporting. Understanding the payment schedule and reporting requirements for local advertising is crucial for managing cash flow and ensuring compliance with the franchise agreement.