How much notice will Lees Famous Recipe provide before increasing the Technology Fee?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
rther described in the Operations Manual. You will pay the then-current fees associated with any technology platform we require to the designated third-party provider. (Franchise Agreement – Section 6(G))
You must pay us the Technology Fee described in Item 6 for Computer System support and periodic updates we or our designee provide to you respecting the Proprietary Software. As of the issuance date of this disclosure document, the Technology Fee is $100 per month. We may increase the Technology Fee upon 60 days' notice to you, but the monthly Technology Fee will not increase by more than 25% annually during the initial term of the Franchise Agreement. (Franchise Agreement – Section 4(F)) We reserve the right to assign our rights, title and interest in any Computer System and/or Proprietary Software to a third party we designate or to replace the Computer System and/or Proprietary Software. In such event, you may be
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–47)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, Lees Famous Recipe may increase the Technology Fee, but they must provide franchisees with 60 days' notice before doing so. The Technology Fee, as of the issuance date of the document, is $100 per month.
Furthermore, any increase to the monthly Technology Fee is capped, and cannot increase by more than 25% annually during the initial term of the Franchise Agreement. This provides some predictability for franchisees in budgeting for this expense.
It is important to note that Lees Famous Recipe also reserves the right to assign its rights to the Computer System and Proprietary Software to a third party. If this occurs, franchisees may be required to enter into a separate software license agreement with that third party and pay any fees associated with that agreement. This could potentially introduce new costs or different fee structures beyond the Technology Fee.