What representations are made by the developer in their application to open a Lees Famous Recipe restaurant?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
rdance with the terms of this Agreement to which Developer must strictly adhere, with each Lee's Famous Recipe Restaurant within the Development Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in our separate and then-current form of franchise agreement (each, a "Franchise Agreement").
- E. You recognize the benefits from receiving the right to operate a Lee's Famous Recipe Restaurant utilizing the System and desire to: (i) become a multi-unit operator subject to the terms of this Agreement; and (ii) receive the benefits provided by us under this Agreement.
- F. You have applied for the right to open and operate a certain number of Lee's Famous Recipe Restaurants within the Development Area as set forth in this Agreement (each, a Restaurant), and we have approved such application in reliance on Developer's representations made therein.
- G. You hereby acknowledge that adherence to the terms of this Agreement, including our Operations Manual and other System standards and specifications, are essential to the operation of all Lee's Famous Recipe Restaurants and the System as a whole. You further acknowledge that time is of the essence in all actions required under this Agreement.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
AGREEMENT
1. DEFINITIONS
- A. "Confidential Information" means the methods, techniques, formats, marketing and promotional techniques and procedures, specifications, information, recipes, Operations Manual (as defined in Section 7(E)), systems, and knowledge of and experience in the operation and franchising of Lee's Famous Recipe Restaurants that we communicate to you or that you otherwise acquire in operating the Restaurant under the System. Any and all information, knowledge and know-how not publicly known about the Lee's Famous Recipe System and the Products, and the services, standards, procedures, techniques and such other information or material as we may designate as Confidential Information will be deemed confidential for purposes of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 FDD, when applying for the right to open and operate a Lee's Famous Recipe Restaurant within a Development Area, the developer makes certain representations that Lees Famous Recipe relies upon when approving the application. The developer acknowledges the benefits of operating a Lee's Famous Recipe Restaurant utilizing the System and expresses a desire to become a multi-unit operator under the terms of the agreement, receiving the benefits provided by Lees Famous Recipe.
As part of the application process, the developer must submit site approval forms and data as specified by Lees Famous Recipe. This may include a copy of the site plan, financial information, and other materials, along with evidence of favorable prospects for obtaining the site, such as an option contract, letter of intent, or term sheet. The developer also acknowledges that adherence to the terms of the Development Agreement, including the Operations Manual and System standards, is essential for the operation of all Lee's Famous Recipe Restaurants and the System as a whole.
Furthermore, the developer recognizes that opening Lee's Famous Recipe Restaurants in the future requires compliance with the Development Schedule and acknowledges that the estimated expenses and investment requirements may increase over time. The developer must execute all Franchise Agreements and open all Restaurants according to the Development Schedule, regardless of increased investment requirements or financial condition. The developer also acknowledges the need to maintain adequate financial resources to meet capital and operational expenses and agrees to provide financial information as required by Lees Famous Recipe.