How often can Lees Famous Recipe adjust the amount of the Technology Fee?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
l advertising cooperative within the Lee's Famous Recipe System in Ohio.
- 7. Technology Fee. You will pay us our then-current monthly technology fee, currently equal to $100 per month. The Technology Fee is due on the Payment Date and must be paid in the same manner as the Royalty Fee. We may adjust the amount of the Technology Fee once per calendar year upon 60 days' notice to you, but the monthly Technology Fee will not increase by
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the Technology Fee, which is currently $100 per month, can be adjusted by Lees Famous Recipe once per calendar year. Lees Famous Recipe must provide franchisees with 60 days' notice before implementing any change to the Technology Fee.
However, there is a limit to how much the Technology Fee can increase in a given year. The FDD states that the monthly Technology Fee will not increase by more than 25% annually during the initial term of the Franchise Agreement. This provides some predictability for franchisees in terms of budgeting for this particular fee.
Technology fees are common in franchising and are intended to cover the costs of maintaining and updating the technology systems used throughout the franchise network. These systems can include point-of-sale systems, online ordering platforms, and other software that supports the operation of the business. The ability to adjust the fee annually allows Lees Famous Recipe to respond to changing technology costs, but the 25% cap offers some protection to franchisees against large, unexpected increases.