When is the Royalty fee due for a Lees Famous Recipe franchise, and how is it paid?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
n the Gross Sales | | | | | during the 7-day period | |
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Cooperative Advertising Fund Fee(3)(4) | 3% of Gross Sales | Payable on the Payment Date based on weekly Gross Sales for the prior week | You will pay us via electronic funds transfer, where we will electronically debit your designated bank account. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the Brand Cooperative Advertising Fund Fee, which is 3% of Gross Sales, is payable on the Payment Date based on weekly Gross Sales for the prior week. This fee is paid via electronic funds transfer, where Lees Famous Recipe will electronically debit the franchisee's designated bank account.
Additionally, if Lees Famous Recipe requires a franchisee to pay Local Advertising Expenditures, up to 1% of weekly Gross Sales, these expenditures are due and payable on the Payment Date. The Technology Fee, currently $100 per month, is also due monthly on the first Payment Date of the month and must be paid in the same manner as the Royalty Fee.
It is important to note that in 2008, Lees Famous Recipe entered into license agreements with LFR Licensees, who, as of December 31, 2024, number 71. These LFR Licensees have differing requirements regarding royalties and advertising fees, highlighting that the standard franchise terms may not apply uniformly across all Lees Famous Recipe locations.