What is the section number for 'Termination Rights' in the Lees Famous Recipe Franchise Agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
16. YOUR OBLIGATIONS UPON TERMINATION OR EXPIRATION
- A. Post-Term Duties. If this Agreement expires or is terminated for any reason, you will:
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- immediately cease operation of the Restaurant and using the Marks as well as any confusingly similar trademarks or service marks;
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- within ten (10) days after termination, pay all amounts due and owing to us or our affiliates, including all Royalty Fees, Brand Cooperative Advertising Fund Fees, Local Advertising Expenditures (if applicable), Regional Marketing Cooperative Contributions (if applicable), Technology Fees and accrued interest due under this Agreement;
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- discontinue using, and return to us by priority United States mail with a tracking number, any hard copies of, the Operations Manual and any other manuals, advertising materials, and all other printed materials relating to the operation of the Franchised Business;
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- assign to us or, at our discretion, disconnect the telephone number for the Restaurant. You acknowledge that we have the sole right to and interest in all telephone numbers and directory listings associated with the Marks, and you authorize us, and appoint us as your attorney-in-fact, to direct the telephone company and all listing agencies to transfer such numbers and listings to us;
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- remove from the Restaurant premises all signs, posters, fixtures, decals, wall coverings and other materials that are distinctive of a Lee's Famous Recipe Restaurant or bear the name "Lee's Famous Recipe" or other Marks;
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- comply with all post-termination obligations under any software license agreement, including the return of all materials relating to the Proprietary Software;
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- take all necessary action to cancel all fictitious or assumed name or equivalent registrations relating to your use of any of the Marks;
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- immediately cease using Confidential Information (including all Customer Data) and return to us all documents in your possession that contain Confidential Information;
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- at our option, we will purchase your inventory of Products in good and saleable condition at your actual cost less a thirty percent (30%) stocking fee and you will return to us any other remaining Products at no cost to us; and
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- comply with all other applicable provisions of this Agreement, including the non-compete provisions.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the section detailing obligations upon termination or expiration of the franchise agreement is Section 16. This section outlines the franchisee's responsibilities when the agreement ends, whether through expiration or termination.
Specifically, Section 16A lists several post-term duties. These include immediately ceasing operation of the Restaurant and discontinuing the use of any Lee's Famous Recipe trademarks. The franchisee must also pay all outstanding amounts owed to Lees Famous Recipe or its affiliates within ten days of termination. This encompasses royalty fees, advertising fund fees, technology fees, and any accrued interest.
Furthermore, the franchisee is required to return all copies of the Operations Manual and other related materials. They must also assign or disconnect the restaurant's telephone number to Lees Famous Recipe. The franchisee is responsible for removing all distinctive signage and materials from the premises and complying with all software license agreements. Finally, the franchisee must cease using confidential information and adhere to the non-compete provisions outlined in the agreement.