Who owns the Proprietary Software used in the Lees Famous Recipe Computer System?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
which we have developed or selected for your Restaurant. We have the right to designate a single source from which you must purchase the Computer System and we or our affiliates may be that single source.
You must use any such Proprietary Software that we require, and the Proprietary Software will remain the confidential property of us or our third-party supplier. You must enter into our or our designee's standard form software license agreement in connection with your use of any Proprietary Software. We reserve the right to charge you an initial license fee related to your use of the Proprietary Software. You will pay the then-current fee (if any) for the Proprietary Software at or before the Proprietary Software is delivered to you. The Computer System may also include the use of various technology platforms, applications or services, which may include online ordering, third-party delivery services and other technology-based services as further 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 required to enter into a separate software license agreement specified by the third-party supplier of the Computer System and/or Proprietary Software and pay any separate fees imposed under that agreement.
We require that you purchase or lease and use a POS System that has been approved in writing by us and meets our specifications and requirements. Currently, the only approved POS system is Focus POS. The POS system will manage the daily workflow of the business, coordinate the customer ordering experience, track inventory, food costs, labor, and other financial information, and have the capability to provide specific detailed information in both dollar amounts and percentages.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–47)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, the Proprietary Software used in the Computer System will remain the confidential property of Lees Famous Recipe or its third-party supplier. As a franchisee, you are required to use the Proprietary Software that Lees Famous Recipe requires and must enter into their standard form software license agreement.
Lees Famous Recipe reserves the right to charge an initial license fee related to the use of the Proprietary Software, and franchisees will be required to pay the then-current fee (if any) at or before the software is delivered. The Computer System may also include the use of various technology platforms, applications, or services, such as online ordering and third-party delivery services. Franchisees will be responsible for paying the current fees associated with any technology platform that Lees Famous Recipe requires to the designated third-party provider.
Lees Famous Recipe also requires franchisees to pay a Technology Fee for Computer System support and periodic updates to the Proprietary Software. As of the issuance date of the 2025 disclosure document, this fee is $100 per month, and Lees Famous Recipe may increase this fee with 60 days' notice, but the monthly increase will not exceed 25% annually during the initial term of the Franchise Agreement. Lees Famous Recipe also reserves the right to assign its rights, title, and interest in any Computer System and/or Proprietary Software to a third party or to replace the Computer System and/or Proprietary Software. In such an event, franchisees may be required to enter into a separate software license agreement with the third-party supplier and pay any separate fees imposed under that agreement.
In addition to the Proprietary Software, Lees Famous Recipe requires franchisees to purchase or lease and use an approved POS System. Currently, the only approved POS system is Focus POS. The FDD estimates the cost of purchasing the Computer System to be between $1,000 and $2,000 and the cost of purchasing the POS System to be between $30,000 and $40,000. Franchisees are also required to purchase certain back-office software from an approved vendor, which currently costs between $100 and $200 per unit per month and includes software for inventory management and food cost management.