Can a third party substitute their judgment for Lees Famous Recipe's reasonable business judgment?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby acknowledge and agree that our consent of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Restaurant or for any other purpose.
Our consent of the site indicates only that we believe the site complies with acceptable minimum criteria established by us solely for its purposes as of the time of the evaluation.
Both you and we acknowledge that application of criteria that may have been effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to approval by us of a site, certain demographic factors, such as competition from other similar businesses, included in or excluded from criteria used by us could change, thereby altering the potential of a site.
Such factors are unpredictable and are beyond our control.
We will not be responsible for the failure of a site that we approved to meet your expectations as to revenue or operational criteria.
You further acknowledge and agree that your acceptance of a franchise for the operation of a Restaurant at a site is based on your own independent investigation of the suitability of the site.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, franchisees acknowledge that the franchisor's consent of a site for a restaurant indicates only that the franchisor believes the site complies with acceptable minimum criteria established by them for its purposes at the time of evaluation. The franchisor does not provide assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the restaurant or for any other purpose.
The FDD states that the application of criteria that may have been effective with respect to other sites and premises may not be predictive of potential for all sites. Demographic factors, such as competition from other similar businesses, included in or excluded from criteria used by the franchisor could change, thereby altering the potential of a site. These factors are unpredictable and beyond the franchisor's control.
The franchisee acknowledges and agrees that their acceptance of a franchise for the operation of a Lees Famous Recipe Restaurant at a site is based on their own independent investigation of the suitability of the site. The franchisor will not be responsible for the failure of a site that they approved to meet the franchisee's expectations as to revenue or operational criteria.