factual

What section of the Lees Famous Recipe Franchise Agreement outlines the requirements for site selection and acquisition/lease?

Lees_Famous_Recipe Franchise · 2025 FDD

Answer from 2025 FDD Document

nated Territory**"). You must find an Authorized Location for your Lee's Famous Recipe Restaurant within the Designated Territory. We grant each franchise for a specific location only. We may require that the Authorized Location that you secure be leased directly to us or our affiliate under a form of lease satisfactory to us and subleased to you under the standard sublease then used by us for that purpose. (Franchise Agreement – Section 6)

    1. We reserve the right to require that you submit to us materials and information related to the proposed site, including a description of the proposed location, a feasibility study (including, without limitation, demographic data, photographs, maps, artists' renderings, site plans, a copy of the lease, if applicable, and documentation indicating your prospects to acquire the Authorized Location), and such other information related to the development of the Authorized Location as we reasonably request (the "Development Materials"). If we require you to submit such Development Materials, we will review those materials and use them as a basis for approving or denying the proposed site that you submit to us for review. Our representatives will examine the proposed location and consult with you, based upon our experience and a study of population, traffic count and information concerning income level of residents and housing costs and any other information available to us relative to the proposed location. While we offer counseling in site selection and have the right to accept or reject all sites, we do not guarantee the suitability or success of the accepted site. We will notify you in writing within 30 days after we receive your complete site report and other materials we request whether the proposed site satisfies our site selection criteria. If we reject the proposed site, you may not proceed at the rejected site but must try to locate an acceptable site within the designated territory of your Franchise Agreement. If we accept the proposed site, you must acquire control of the site by either purchase or lease of the site from independent third parties. If we do not accept a proposed site and as a result you default under the Franchise Agreement, then we may terminate your Franchise Agreement, and if applicable your Area Development Agreement. It is also your responsibility to obtain necessary zoning and construction approvals and permits, architectural services and contracts for building construction or remodeling as required, and equipment in accordance with approved final building and equipment plans. (Franchise Agreement – Section 6(B))
    1. 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))
    1. 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
  • financing will generate an occupancy cost in excess of the Restaurant's normal operating costs.

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 6 of the Franchise Agreement outlines the requirements for site selection and acquisition/lease. Item 11 of the FDD also references Section 6 of the Franchise Agreement regarding site selection.

Specifically, Item 11 states that Lees Famous Recipe may require the Authorized Location to be leased directly to them or their affiliate and then subleased to the franchisee. The franchisee is responsible for finding an Authorized Location within their Designated Territory. Lees Famous Recipe reserves the right to require the franchisee to submit materials and information related to the proposed site, including a description of the proposed location, a feasibility study, and a copy of the lease, if applicable.

Lees Famous Recipe representatives will examine the proposed location and consult with the franchisee, based upon their experience and a study of population, traffic count, income level of residents, and housing costs. However, Lees Famous Recipe does not guarantee the suitability or success of the accepted site. The franchisor will notify the franchisee in writing within 30 days after receiving the complete site report whether the proposed site satisfies their site selection criteria. If the proposed site is rejected, the franchisee must try to locate an acceptable site within the designated territory.

Furthermore, Lees Famous Recipe will review and approve or deny any financing related to the franchisee's real estate or other improvements to the Restaurant, solely to determine if such financing will generate an occupancy cost in excess of the Restaurant's normal operating costs. Upon acceptance of a proposed site, Lees Famous Recipe will provide a copy of one set of preliminary architectural plans and/or written specifications for a Traditional Stand-alone Lee's Famous Recipe Restaurant. The franchisor must approve all proposed modifications to their basic plans and specifications before the start of construction.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.