When does membership in AdCom automatically commence for Lees Famous Recipe franchisees operating Units?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
The members of AdCom will consist of the Franchisor/Licensor, and such persons or entities that now or hereafter own Units that are owned, franchised, licensed or sub-licensed by the Franchisor/Licensor or its affiliates. Membership for such persons and entities operating Units will automatically commence when the Unit opens for business. In addition, when a person or entity acquires ownership of a Unit or when a person or entity opens a Unit which is owned, franchised, licensed or sublicensed by the Franchisor, or its affiliates, after the date hereof, each such entity or person shall be bound by these By-Laws. Membership shall continue until AdCom is dissolved or the member ceases to operate its unit, as provided in Article 4.7 of these By-Laws.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, membership in AdCom, the advertising cooperative, automatically commences for franchisees operating Units when the Unit opens for business. This means that as soon as a Lees Famous Recipe franchise location begins serving customers, the franchisee becomes a member of AdCom.
This automatic membership ensures that all operating franchise units contribute to and benefit from the advertising and marketing efforts coordinated by AdCom. It also means that new franchisees will immediately be subject to AdCom's bylaws and any agreements between the members and the Franchisor/Licensor.
Membership continues until AdCom is dissolved or the member ceases to operate their unit. This ensures continuous participation and contribution as long as the franchise is in operation under the Lees Famous Recipe brand. Franchisees should be aware of their obligations and voting rights within AdCom, as outlined in the bylaws, to effectively participate in the cooperative's activities.