Is the renewal franchise agreement for Lees Famous Recipe the same as the original franchise agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Renewal Agreement. You will have the right to enter into a renewal agreement for the Franchise for the Restaurant for one (1) additional term of fifteen (15) years, provided you satisfy the following conditions respecting the renewal term:
-
- You have given us written notice at least one hundred and twenty (120) days but no more than three hundred and sixty-five (365) days before the end of the term of this Agreement of your intention to enter into a renewal agreement;
-
- Within the twenty-four (24) months immediately preceding the expiration of this Agreement, you have not been in default in the performance of any material obligation, with the definition of "material obligation" being made in our sole discretion, under this Agreement or any other agreement between you and us or any of our affiliates and continue to comply with all of the material provisions of this Agreement and all other agreements between you and us or any of our respective affiliates, including the payment of all monetary obligations you owe to us or our affiliates, and have complied with our material operating and quality standards and procedures;
-
- You provide documentation satisfactory to us that you have the right to maintain possession of the Authorized Location during the renewal term described in our then-current franchise agreement and have, at your expense, made such reasonable capital expenditures necessary to remodel, modernize and redecorate the Restaurant and to replace and modernize the décor, supplies, fixtures, signs, and equipment used in operating the Restaurant so that the Restaurant reflects the then-current physical appearance of new Lee's Famous Recipe Restaurants, or can secure a new location within the Designated Territory to which we have consented (such consent not to be unreasonably withheld) and agree to make all required improvements to the new Restaurant premises and install all required fixtures and equipment in compliance with our then-current standards and specifications for new Lee's Famous Recipe Restaurants;
-
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
Based on the 2025 Lees Famous Recipe Franchise Disclosure Document, the renewal agreement for a Lees Famous Recipe franchise is not the same as the original franchise agreement. The FDD states that a franchisee has the right to enter into a renewal agreement for one additional term of fifteen years, provided certain conditions are met. These conditions include giving written notice within a specified timeframe, remaining in compliance with all material obligations and standards, providing documentation for maintaining possession of the authorized location, and completing any required new or refresher training.
Specifically, the franchisee must provide documentation that they can maintain possession of the authorized location during the renewal term as described in the then-current franchise agreement. They must also make necessary capital expenditures to remodel, modernize, and redecorate the restaurant to reflect the current physical appearance of new Lees Famous Recipe restaurants. Alternatively, the franchisee can secure a new location within the designated territory, subject to the franchisor's consent, and make all required improvements to meet the current standards for new Lees Famous Recipe restaurants.
These stipulations indicate that the renewal agreement is based on the franchise agreement that is current at the time of renewal, not necessarily the original agreement. This implies that the terms and conditions of the renewal agreement may differ from those of the original agreement, reflecting changes in the Lees Famous Recipe system, standards, and requirements over time. Therefore, franchisees need to be aware of the then-current franchise agreement's terms when considering renewal and be prepared to meet the updated standards and requirements.