What standards must a transferee meet to be approved by Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
If we elect to grant out consent, then in addition to other requirements, we may condition our consent upon your satisfaction of and compliance with the following conditions:
The transferee (or the Operating Principal of the transferee, if applicable) is approved by us and demonstrates to our satisfaction that they meet our managerial, financial and business standards for new Lee's Famous Recipe Restaurants, possess a good business reputation and credit rating, and have the aptitude and ability to conduct the franchised business.
The transferee, the new Operating Principal, and up to at least three (3) managers, including the new general manager and assistant managers (or their operating equivalent), successfully complete the initial training program required of new Lee's Famous Recipe franchisees;
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, the franchisor may grant or withhold consent to an assignment of the Franchise Agreement for any reason. If Lees Famous Recipe elects to grant consent, the transferee must meet certain standards.
The transferee (or the Operating Principal of the transferee, if applicable) must be approved by Lees Famous Recipe and demonstrate that they meet the franchisor's managerial, financial, and business standards for new restaurants. The transferee must also possess a good business reputation and credit rating, and have the aptitude and ability to conduct the franchised business. Additionally, the transferee, the new Operating Principal, and up to at least three managers (including the new general manager and assistant managers) must successfully complete the initial training program required of new franchisees.
In addition to these qualifications, the transferee must enter into a written agreement, satisfactory to Lees Famous Recipe, assuming all obligations under the existing Franchise Agreement for the remainder of its term, or sign the then-current standard form of franchise agreement. The lessor of the authorized location must consent to the assignment or sublease of the premises to the transferee, if required. The prospective franchisee should seek clarification from Lees Famous Recipe regarding the specific managerial, financial, and business standards required for transferee approval, as well as details about the initial training program.