Does Lees Famous Recipe require the transferee to have a good credit rating?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferee (or the Operating Principal of the transferee, if applicable) is approved by us and demonstrates to our satisfaction that they meet our managerial, financial and business standards for new Lee's Famous Recipe Restaurants, possess a good business reputation and credit rating, and have the aptitude and ability to conduct the franchised business.
You understand that we may communicate directly with the transferee during the transfer process to respond to inquiries, as well as to ensure that the transferee meets our qualifications;
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, if a franchisee wants to transfer their franchise to a new owner, the potential new owner (the transferee) must meet certain requirements. Lees Famous Recipe must approve the transferee, and the transferee must demonstrate that they meet the company's standards for new restaurants.
Specifically, the transferee needs to show that they meet Lees Famous Recipe's managerial, financial, and business standards. They also need to have a good business reputation and credit rating. Additionally, the transferee must have the aptitude and ability to successfully run the franchised business.
This means that if you're planning to sell your Lees Famous Recipe franchise, the person or entity you're selling to will need to have a solid credit history and demonstrate they have the skills and resources to operate the restaurant successfully. Lees Famous Recipe has the right to communicate directly with the potential transferee during this process to ensure they meet all qualifications.