Does Lees Famous Recipe reserve the right to charge a license fee for the Proprietary Software?

According to Lees Famous Recipe's 2025 Franchise Disclosure Document, franchisees must obtain and use certain proprietary software from Lees Famous Recipe or their designated third-party supplier. Franchisees are also required to enter into a standard software license agreement. Lees Famous Recipe retains the right to charge a license fee for the use of this proprietary software. If Lees Famous Recipe requires a franchisee to pay this fee, the franchisee will be responsible for paying the then-current fee at or before the software is delivered.

This means that the cost of the proprietary software is not necessarily included in the initial franchise fee or other upfront costs. Lees Famous Recipe has the discretion to implement a license fee at any time, and the franchisee will be obligated to pay it. This could impact the franchisee's ongoing operating expenses and profitability. It is important for prospective franchisees to inquire about the current license fee, if any, and whether Lees Famous Recipe anticipates implementing or increasing this fee in the future.

Many franchisors require franchisees to use specific software systems for point-of-sale, inventory management, and other business operations. It is common for franchisors to either include the cost of the software in the initial fees or to charge ongoing licensing or subscription fees. The fact that Lees Famous Recipe reserves the right to charge a license fee is not unusual, but the lack of a fixed fee in the FDD makes it difficult for prospective franchisees to accurately project their expenses.