What is the section number for 'Confidential Information/Improvements' in the Lees Famous Recipe Franchise Agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS FRANCHISE AGREEMENT ("Agreement") is made and entered into this day |
|---|
| of, 20, (the "Effective Date") between Lee's Franchisor LLC, a Delaware |
| limited liability company, with a principal place of business at 1270 N. Eglin Parkway, Suite C-14, |
| Shalimar, Florida 32579 ("we" or "us"), and, a |
| [corporation / limited liability company / partnership] with a principal |
| place of business at ("you"). |
| INTRODUCTION |
| A. |
| We have developed and own a System (as defined below) relating to the development and |
| operation of quick service restaurants that sell chicken, biscuits, and other approved food and beverage |
| products sold by Lee's Famous Recipe Restaurants. |
| B. |
| We own the "Lee's Famous Recipe®," "Famous Recipe®," and "Lee's: Famous for |
| Chicken®" service marks, and other related trademarks and service marks as we periodically may modify |
| (the "Marks") used in operating the System. |
| C. |
| We grant qualified persons the right to develop, own and operate a Franchised Business |
| (as defined below) at a specific location. |
| D. |
| You desire to obtain the right to develop and operate a Restaurant using the System at a |
| specific location. |
| AGREEMENTS |
| In consideration of the mutual covenants and agreements stated below, the parties agree as follows: |
| 1. |
| DEFINITIONS |
| A. |
| "Annual Conference" means |
| any annual franchise conference that we sponsor or |
| designate. |
| B. |
| "Authorized Location" means the location of your Restaurant that we review and approve |
| in writing. |
| C. |
| "Authorizing Documents" means your articles of incorporation, bylaws, operating |
| agreement or other organizational documents. |
| D. |
| "Brand Cooperative Advertising Fund" or "Fund" has the meaning given to it in Section |
| 5(A) of this Agreement. |
| E. |
| "Brand Cooperative Advertising Fund Fee" has the meaning given to it in Section 4(C) of |
F. "Confidential Information" means the methods, techniques, formats, marketing and
promotional techniques and procedures, specifications, information, recipes, Operations Manual (as defined in Section 7(E)), systems, and knowledge of and experience in the operation and franchising of Lee's Famous Recipe Restaurants that we communicate to you or that you otherwise acquire in operating the Restaurant under the System. Any and all information, knowledge and know-how not publicly known
this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
Based on the 2025 Lees Famous Recipe Franchise Disclosure Document, Section F of Item 22 defines "Confidential Information" as methods, techniques, formats, marketing and promotional techniques and procedures, specifications, information, recipes, Operations Manual (as defined in Section 7(E)), systems, and knowledge of and experience in the operation and franchising of Lee's Famous Recipe Restaurants. It also includes any and all information, knowledge, and know-how not publicly known about the Lee's Famous Recipe System, the Products, and the services, standards, procedures, techniques, and such other information or material as may be designated as Confidential Information.
This means that as a franchisee, you are bound to protect all the confidential aspects of the Lees Famous Recipe system. This includes everything from recipes to marketing strategies. You cannot disclose this information to third parties or use it for any purpose other than operating your franchise. The definition clarifies that information generally known to the public is not considered confidential, unless you were the one who disclosed it.
Section 7(E) is referenced within the definition of 'Confidential Information'. A prospective franchisee should review Section 7(E) to understand the full scope of the Operations Manual and its role in defining confidential information. Additionally, franchisees should seek clarification from the franchisor regarding what constitutes 'improvements' and how those are handled within the franchise agreement, as this specific term is not explicitly defined in the provided excerpts.