What are the specific obligations of a Lees Famous Recipe franchisee regarding conspicuously identifying their restaurant's ownership?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Franchise Agreement for any reason, your right to use the name "Lee's Famous Recipe" and the other Marks and the System will immediately terminate, and you (and the Principal Owners) will not in any way associate yourself/themselves as being associated with us. If you fail to immediately remove all signs and other materials bearing the Marks, we may do so at your expense.
B. Redecoration. If this Agreement expires or is terminated for any reason, and you either remain in possession of the premises of the former Restaurant to operate a separate business not in violation of Section 13 above or enter into an agreement with a third party to allow such third party to directly operate a business at the premises of the former Restaurant, you will, at your expense, modify both the exterior and interior appearance of the business premises so that they will be easily distinguished from the standard
appearance of Lee's Famous Recipe Restaurants. At a minimum, such changes and modifications to the premises will include: (1) repainting the premises with totally different colors; (2) removing all signs and other materials bearing the name "Lee's Famous Recipe" and other Marks; (3) removing from the premises all fixtures which are indicative of Lee's Famous Recipe Restaurants; (4) discontinuing use of the approved employee uniforms and refraining from using any uniforms which are confusingly similar; (5) discontinuing use of all packaging and Confidential Information regarding the operation of the Restaurant; and (6) taking such other action, at your expense, as we may reasonably require. If you fail to immediately initiate modifications to the premises of the former Restaurant or complete such modifications with any period of time we deem appropriate, you agree that we or our designated agents may enter the premises of the former Restaurant to make such modifications, at your risk and expense, without responsibility for any actual or consequential damages to your property or others, and without liability for trespass or other tort or criminal act.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, upon termination or expiration of the Franchise Agreement, the franchisee's right to use the "Lee's Famous Recipe" name, Marks, and System immediately terminates. The franchisee (and Principal Owners) must not associate themselves with Lees Famous Recipe in any way after termination or expiration of the agreement.
If the franchisee fails to immediately remove all signs and other materials bearing the Marks, Lees Famous Recipe has the right to do so at the franchisee's expense. Furthermore, if the franchisee remains in possession of the premises to operate a separate business or allows a third party to operate a business there, they must modify the exterior and interior to be easily distinguishable from Lees Famous Recipe Restaurants.
These modifications include repainting with different colors, removing all signs and materials bearing the "Lee's Famous Recipe" name and Marks, removing fixtures indicative of Lees Famous Recipe Restaurants, discontinuing the use of approved employee uniforms (and refraining from using confusingly similar uniforms), discontinuing the use of all packaging and Confidential Information, and taking any other actions reasonably required by Lees Famous Recipe, all at the franchisee's expense. If the franchisee does not initiate or complete these modifications promptly, Lees Famous Recipe or its agents may enter the premises to make such modifications at the franchisee's risk and expense, without liability for damages or trespass.
These requirements are typical in franchising to protect the brand's identity and prevent consumer confusion after a franchise agreement ends. Franchisees should be aware of these post-termination obligations and the potential costs associated with rebranding or modifying the premises to comply with the agreement.