Which sections of the Lees Famous Recipe Franchise Agreement cover advertising obligations?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
Throughout the term of the Franchise Agreement, we will satisfy the following obligations under the Franchise Agreement, or if appropriate the Area Development Agreement.
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- Administer the Brand Cooperative Advertising Fund to provide such advertising and advertising material on a national, regional or local basis in accordance with its bylaws. We may require you to pay for some of the advertising materials that we make available to you (Franchise Agreement – Section 5(A)). Cooperative in the same manner as you and any other Lee's Famous Recipe franchisees that participate in the Regional Advertising Cooperative. (Franchise Agreement – Section (5(C))
Local Market Advertising and Promotion
In addition to your required contributions to the Brand Cooperative Advertising Fund described above, we may require you to spend or pay us the Local Advertising Expenditure, which may be up to 1% of Gross Sales on approved local advertising and promotion of your Restaurant, exclusive of on-site signs, telephone directory listings, and costs of Products sold at a reduced cost or given away. If we require you to pay us the Local Advertising Expenditure, then we will spend it on your behalf in our sole discretion. Each quarter, or at any other time upon our reasonable request, you must provide us with documentation evidencing that you have spent the minimum amount of Local Advertising Expenditure. (Franchise Agreement – Section (5(B))
All advertising, promotional and marketing materials you use must meet our standards and you must obtain our prior written approval before implementing or using the advertising, promotional or marketing materials (including any Internet, online electronic or social network). You may not use any advertising or promotional materials that we have disapproved. If you use any advertising or promotional materials without submitting those materials to us or if you use materials we disapprove, in addition to any separate remedies we may have, any amounts spent on those materials will not be credited toward your local marketing obligations (Franchise Agreement – Section (5(D))
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, several sections of the Franchise Agreement outline advertising obligations. Section 5(A) is referenced in Item 11, indicating franchisees may be required to pay for advertising materials provided by Lees Famous Recipe. Section 5(C) discusses participation in Regional Advertising Cooperatives. Section 5(B) allows Lees Famous Recipe to require franchisees to spend up to 1% of Gross Sales on local advertising, with franchisees needing to provide documentation of these expenditures. Finally, Section 5(D) mandates that all advertising materials meet Lees Famous Recipe's standards and receive prior written approval, with non-approved materials not counting towards local marketing obligations. These sections collectively define the scope and requirements for advertising and promotional activities for Lees Famous Recipe franchisees.