How is the Lees Famous Recipe relocation fee calculated?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You may relocate your Restaurant only with our written consent, which we will not unreasonably withhold. If we permit you to relocate your Restaurant, you will pay us a relocation fee equal to 50% of our then-current Initial Franchise Fee for services we will provide in assisting you in relocating your Restaurant. In addition, you will need to build out the Restaurant consistent with our then-current standards for new Restaurants.
Source: Item 12 — TERRITORY (FDD pages 47–50)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, franchisees who wish to relocate their restaurant must first obtain written consent from Lees Famous Recipe, which the company will not unreasonably withhold. If relocation is approved, the franchisee is required to pay a relocation fee. This fee is equal to 50% of the then-current Initial Franchise Fee.
In addition to paying the relocation fee, the franchisee is responsible for ensuring that the new restaurant location meets Lees Famous Recipe's current standards for new restaurants. This likely involves build-out costs to conform to the brand's latest image and operational requirements.
Relocation fees are common in franchising to compensate the franchisor for the work involved in approving a new site and ensuring it meets brand standards. The fee covers services Lees Famous Recipe provides in assisting with the relocation. Franchisees should consider the cost of the relocation fee, as well as the build-out costs, when deciding whether to relocate a Lees Famous Recipe restaurant.