Does Lees Famous Recipe review and approve or deny a franchisee's lease for a Lees Famous Recipe restaurant?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- We will review and approve or deny your lease to ensure that it contains the terms we require in all leases. (Franchise Agreement – Section 6(C))
-
- We will review and approve or deny any financing related to your real estate or other improvements to the Restaurant, solely to determine, in our reasonable discretion, if such
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–47)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, Lees Famous Recipe does review and approve or deny a franchisee's lease. Specifically, Lees Famous Recipe will review the lease to ensure that it contains the terms they require in all leases.
This means that a prospective franchisee cannot simply sign any lease they find acceptable. Lees Famous Recipe has specific requirements that must be included in the lease agreement. The franchisee must submit the lease to Lees Famous Recipe for approval, and Lees Famous Recipe has the right to deny the lease if it does not meet their standards.
Additionally, Lees Famous Recipe may require that the Authorized Location that you secure be leased directly to them or their affiliate under a form of lease satisfactory to them and subleased to you under the standard sublease then used by them for that purpose. This gives Lees Famous Recipe further control over the real estate and ensures that the location meets their requirements. This also means that the franchisee would be subleasing the property from Lees Famous Recipe rather than leasing directly from the landlord.
Furthermore, Lees Famous Recipe also reviews and approves or denies any financing related to your real estate or other improvements to the Restaurant, solely to determine, in their reasonable discretion, if such financing will generate an occupancy cost in excess of the Restaurant's normal operating costs. This is to ensure the financial viability of the franchise location.