Does the renewal agreement for a Lees Famous Recipe franchise have to comply with the current Franchise Agreement?

According to Lees Famous Recipe's 2025 Franchise Disclosure Document, a franchisee must comply with the current Franchise Agreement to be eligible for renewal. Specifically, Item 17 outlines the requirements for renewal, stating that the franchisee must provide advance notice, not be in default within the 24 months preceding the initial term's expiration, comply with the current Franchise Agreement, satisfactorily complete any new/refresher training programs, sign a new agreement, remodel, provide proof of maintaining possession of the restaurant premises, remodel the restaurant to meet current standards, pay a renewal fee, and sign a general release of claims.

This requirement means that a franchisee seeking to renew their Lees Famous Recipe franchise must ensure they are operating in full compliance with the then-current standards and obligations outlined in the Franchise Agreement. This includes adhering to operational guidelines, maintaining brand standards, and fulfilling all financial obligations. Failure to meet these requirements within the 24 months before the initial term expires can disqualify a franchisee from being able to renew.

Furthermore, the renewal agreement that a franchisee signs may contain materially different terms and conditions than the original Franchise Agreement. This is a common practice in franchising, as franchisors often update their agreements to reflect changes in the market, legal requirements, or the overall business model. Therefore, franchisees should carefully review the new agreement and understand any changes before signing. The need to remodel the restaurant to comply with current standards could also represent a significant investment for the franchisee at the time of renewal.