What must I do with the Proprietary Software related to the Lees Famous Recipe franchise upon termination?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Post-Term Duties. If this Agreement expires or is terminated for any reason, you will:
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- comply with all post-termination obligations under any software license agreement, including the return of all materials relating to the Proprietary Software;
II. "Proprietary Software" means the proprietary software programs we may designate for use in operating your Restaurant, including any software used for the Computer System.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 FDD, upon termination of the Lees Famous Recipe franchise agreement, the franchisee is obligated to comply with all post-termination obligations under any software license agreement, which includes returning all materials related to the Proprietary Software. The Proprietary Software is defined as the proprietary software programs that Lees Famous Recipe designates for use in operating the Restaurant, including any software used for the Computer System.
This means that a franchisee must discontinue using the software and return all related materials. This requirement is standard in franchising to protect the franchisor's intellectual property and ensure that terminated franchisees do not continue to benefit from the franchise system's resources.
It is important for prospective franchisees to carefully review the software license agreement to understand the full scope of their obligations regarding the Proprietary Software upon termination. Franchisees should seek clarification from Lees Famous Recipe regarding specific procedures for returning the software and related materials to ensure compliance with the franchise agreement.