What section of the Lees Famous Recipe Franchise Agreement addresses the franchisee's obligations regarding maintenance, appearance, and remodeling requirements?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to your obligations above, you will, at your expense, make such reasonable capital expenditures necessary to remodel, modernize and redecorate the Restaurant premises so that the Restaurant reflects the then-current physical appearance of new Lee's Famous Recipe Restaurants. We may require you to take such action: (1) as soon as five (5) years after the date of this Agreement, but no more than once per each term (and renewal term, if applicable); (2) as a condition to the transfer of any interest as further described in Section 14(C); (3) as a condition of renewal; and (4) otherwise during the term of the Agreement as further described in the Operations Manual. You acknowledge and agree that the requirements of this Section 9(A) are both reasonable and necessary to ensure continued public acceptance and patronage of Lee's Famous Recipe Restaurants and to avoid deterioration or obsolescence in connection with the operation of the Restaurant. You further agree that, prior to any commencement of such repair or remodeling, you will submit to us proposed plans prepared by a licensed architect, at your expense, that comply with applicable laws, ordinances, building codes, permit requirements, lease requirements and restrictions, including proof of any variances required by building and zoning codes. You will not undertake such repairs or remodeling until we have approved the proposed plans in writing as satisfactory.
If the Restaurant is damaged or destroyed by fire or any other casualty, you will, within thirty (30) days, initiate repairs or reconstruction, and thereafter in good faith and with due diligence continue (until completion) repairs or reconstruction, to restore the Restaurant premises to its original condition before the casualty. If, in our reasonable judgment, the damage or destruction is of a nature or to an extent that you can repair or reconstruct the premises of the Restaurant consistent with the then-current décor and specifications of a new Lee's Famous Recipe Restaurant without incurring substantial additional costs, we may require, by giving written notice, that you repair or reconstruct the Restaurant premises in compliance with the then-current decor and specifications.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, Section 9(A) of Item 22, "CONTRACTS" details the franchisee's responsibilities for maintaining and updating the restaurant's appearance. This section emphasizes the franchisee's obligation to remodel, modernize, and redecorate the restaurant to align with the current image of new Lees Famous Recipe locations. These expenditures are the responsibility of the franchisee.
The franchise agreement stipulates specific instances when Lees Famous Recipe may require these updates. This includes every five years, as a condition for transferring any ownership interest, as a condition for renewing the franchise agreement, or at any other time during the agreement as outlined in the Operations Manual. The document stresses that these requirements are essential for maintaining public appeal and preventing the restaurant from becoming outdated.
Prior to commencing any repairs or remodeling, the franchisee must submit plans prepared by a licensed architect, at their own expense, ensuring compliance with all applicable laws, ordinances, building codes, permit requirements, and lease restrictions. These plans require written approval from Lees Famous Recipe before any work can begin. Furthermore, in the event of damage or destruction to the restaurant, the franchisee is obligated to initiate repairs or reconstruction within 30 days, restoring the premises to its original condition or to the then-current decor standards of a new Lees Famous Recipe restaurant, as directed by the franchisor.