What specific representations made by the developer are Lees Famous Recipe relying on when approving the application?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You have applied for the right to open and operate a certain number of Lee's Famous Recipe Restaurants within the Development Area as set forth in this Agreement (each, a Restaurant), and we have approved such application in reliance on Developer's representations made therein.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 FDD, Lees Famous Recipe approves a developer's application for the right to open and operate restaurants within a Development Area based on the representations made by the developer in their application. This means that Lees Famous Recipe relies on the accuracy and truthfulness of the information provided by the developer in their application when deciding whether to grant them the rights to develop restaurants in a specific area.
Prospective developers should ensure that all information provided in their application is accurate, complete, and truthful. Any misrepresentations or omissions could lead to the rejection of the application or, if discovered later, to the termination of the development agreement. Lees Famous Recipe needs to trust that the developer is providing reliable information upon which they can base their decision to award development rights.
This reliance on the developer's representations is a standard practice in franchising, as franchisors need to assess the capabilities and suitability of potential franchisees or developers. The representations typically cover various aspects, such as the developer's financial capacity, experience, and plans for developing the territory. Developers should be prepared to provide supporting documentation and be transparent in their dealings with Lees Famous Recipe to build trust and increase their chances of approval.