Is there a renewal fee for a Lees Famous Recipe franchise?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Term is 15 years. |
| b. | Renewal or extension of the term | 3 | If you are in good standing, you may renew for an additional 15-year term. |
| Provision | Section in franchise agreement | Summary | |
| ---- | --------------------------------------------------- | -------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| c. | Requirements for franchisee to renew or extend | 3 | Provide advance notice, not be in default within the 24 months preceding the expiration of the initial term, comply with current Franchise Agreement, satisfactorily complete any new/refresher training programs, sign a new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), remodel, provide proof you will maintain possession of the Restaurant premises and remodel the Restaurant as necessary to comply with our then-current standards and specifications, pay a renewal fee, and sign a general release of claims. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, a renewal fee is required to extend the franchise term. The standard franchise agreement has a term of 15 years, and franchisees in good standing have the option to renew for an additional 15-year term.
To renew the Lees Famous Recipe franchise agreement, franchisees must provide advance notice, not be in default within the 24 months preceding the initial term's expiration, comply with the current Franchise Agreement, satisfactorily complete any new or refresher training programs, and sign a new agreement. This new agreement may contain significantly different terms and conditions from the original franchise agreement.
Additionally, franchisees must provide proof that they will maintain possession of the restaurant premises, remodel the restaurant as necessary to comply with Lees Famous Recipe's then-current standards and specifications, pay a renewal fee, and sign a general release of claims. These conditions are typical in franchise renewals, as franchisors want to ensure that franchisees continue to meet brand standards and resolve any potential disputes before committing to another term.