What was the reported purchase price related to acquisitions for Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
OH Advertising Cooperative, Inc. as of December 31, 2022.
NOTE 9 - RELATED PARTY TRANSACTIONS (Continued)
During the years ended December 31, 2023 and 2022, the Company paid Lee's Famous Recipe Advertising Cooperative, Inc. and LFRC OH Adverting Cooperative, Inc. $626,167 and $393,235, respectively. No amounts were paid to the related parties in the period ended December 31, 2021.
NOTE 10 - ACQUISITIONS
LFRC Springfield, LLC:
On April 12, 2022, the Company acquired certain fixed assets from Far From Famous, LLC. The goodwill of approximately $600,000 arising from the acquisition consists largely of future earnings potential. The Company paid approximately $8,500,000 for the acquisition.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, Lees Famous Recipe's parent company, Artemis Restaurant Corp, made several acquisitions. On April 12, 2022, Artemis acquired certain fixed assets from Far From Famous, LLC for approximately $8,500,000. This acquisition resulted in goodwill of approximately $600,000, largely attributed to future earnings potential.
In January 2024, Artemis acquired certain fixed assets and assumed a lease from Lumena, LLC, paying approximately $375,000. This acquisition resulted in approximately $264,000 in goodwill. Additionally, in March 2024, Artemis executed a purchase agreement for $11,534,000 to acquire certain assets and assume certain liabilities from EJG Enterprises, Inc., although this acquisition had not closed by the time the financial statements were available.
These acquisitions reflect Lees Famous Recipe's growth strategy through acquiring existing businesses and assets. For a prospective franchisee, this indicates that the parent company is actively investing in expansion and may be open to acquiring existing franchise locations or converting independent restaurants. The goodwill associated with these acquisitions suggests that Lees Famous Recipe anticipates future profitability and brand value growth.