What is the section number for 'Development and Opening of the Restaurant' in the Lees Famous Recipe Franchise Agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Restaurant's Authorized Location. We and you agree that the Restaurant will be located |
|---|---|
| at the following premises: You acknowledge that our consent to a proposed location is not a representation or warranty of any kind by us or our affiliates as to the suitability of the proposed location for a Lee's Famous Recipe Restaurant. | |
| 2. | Designated Territory. The Designated Territory will be the following: |
| 3. | Restaurant Opening. You agree to complete the development and open the Restaurant for business within twelve (12) months after the date first stated above, or in accordance with the development obligations as described in the Area Development Agreement, if applicable. |
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, Exhibit A of the franchise agreement includes details regarding restaurant opening. Specifically, it states that the franchisee agrees to complete development and open the restaurant for business within twelve months of the agreement date, or according to the development obligations outlined in the Area Development Agreement, if one exists.
This section of the agreement is important for prospective franchisees as it sets a clear timeline for opening their Lees Famous Recipe restaurant. Failing to meet this deadline could potentially result in consequences, although the document does not specify what those consequences might be.
It is fairly typical in the franchise industry to have a defined timeframe for opening to ensure that franchisees are committed to launching their business promptly and in alignment with the franchisor's development plans. Prospective franchisees should carefully review Exhibit A and any related Area Development Agreements to fully understand their obligations and timelines for opening their Lees Famous Recipe restaurant.