For how long can a Lees Famous Recipe franchise be renewed, assuming all requirements are met?
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 franchise agreement has an initial term of 15 years. If a franchisee is in good standing, they have the option to renew the franchise for one additional term of 15 years.
To be eligible for renewal, a Lees Famous Recipe franchisee must meet several requirements. These include providing advance notice of their intent to renew, not being in default within the 24 months preceding the expiration of the initial term, and complying with the current Franchise Agreement. Franchisees must also satisfactorily complete any new or refresher training programs that Lees Famous Recipe requires at the time of renewal.
Furthermore, the franchisee will need to sign a new franchise agreement, which Lees Famous Recipe notes may contain materially different terms and conditions than the original agreement. The franchisee must also provide proof that they will maintain possession of the restaurant premises, remodel the restaurant as necessary to comply with Lees Famous Recipe's then-current standards and specifications, pay a renewal fee, and sign a general release of claims. These conditions are fairly standard in the franchise industry, as franchisors typically want to ensure that franchisees are up-to-date with the brand's current image and operational standards upon renewal.