Are the rights and remedies granted in the Lees Famous Recipe agreement cumulative?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, if you fail to comply with the Development Schedule, or otherwise materially default under this Agreement, then we may (in addition to our other remedies available to us under this Agreement, the Franchise Agreement(s), and applicable law) terminate or modify your territorial rights in or to the Development Area, reduce or modify the size of the Development Area, or reduce the number of Restaurants that you are granted the right to develop under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, if a franchisee fails to comply with the Development Schedule or otherwise materially defaults under the Development Agreement, Lees Famous Recipe may pursue various remedies. These remedies are in addition to any other options available to Lees Famous Recipe under the Development Agreement, Franchise Agreement(s), and applicable law.
Specifically, Lees Famous Recipe has the right to terminate or modify the franchisee's territorial rights within the Development Area. They can also reduce or modify the size of the Development Area or decrease the number of restaurants the franchisee is authorized to develop under the Development Agreement.
This clause indicates that Lees Famous Recipe is not limited to a single course of action if a franchisee breaches the agreement. They can pursue multiple remedies simultaneously or sequentially, providing them with considerable flexibility in addressing defaults and protecting their interests. Prospective franchisees should understand that non-compliance can lead to a combination of penalties, including loss of territory and development rights, in addition to any legal or contractual remedies Lees Famous Recipe might pursue.