For Lees Famous Recipe, what is the purpose of Exhibit B in relation to the Authorized Location?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
The location of the Restaurant and your Designated Territory are identified in Exhibit A, or alternatively, the parties will complete and sign Exhibit B, in which the parties agree on a geographic area where the location of the Restaurant will be established, subject to our written consent, within three (3) months after the date of this Agreement.
You do not receive any territorial rights upon designation of the geographic area in Exhibit B, and we and our affiliates have the right to operate and franchise other Lee's Famous Recipe Restaurants within that designated area.
Once we consent to a location for the Restaurant within the geographic area established in Exhibit B, however, the parties will sign Exhibit A and identify the Designated Territory.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, Exhibit B serves to define the general geographic area where a franchisee's restaurant location will be established. Specifically, the franchisee and Lees Famous Recipe will complete and sign Exhibit B to agree on a geographic area where the restaurant's location will be established, subject to Lees Famous Recipe's written consent, within three months of the franchise agreement date.
However, the FDD states that the franchisee does not receive any territorial rights upon designation of the geographic area in Exhibit B. Lees Famous Recipe retains the right to operate or franchise other Lees Famous Recipe restaurants within that designated area. Once Lees Famous Recipe consents to a specific location within the area defined in Exhibit B, the parties will sign Exhibit A to identify the Designated Territory.
In summary, Exhibit B is used initially to define a general area for the restaurant, but it does not grant the franchisee any exclusive rights to that area. The actual Designated Territory, with its associated rights and restrictions, is established later in Exhibit A after a specific location is approved by Lees Famous Recipe.