What was the total purchase price in the Lees Famous Recipe acquisition?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
9,364 at December 31, 2023. No amounts were due to LFRC OH Advertising Cooperative, Inc. as of December 31, 2022.
NOTE 9 - RELATED PARTY TRANSACTIONS (Continued)
During the years ended December 31, 2023 and 2022, the Company paid Lee's Famous Recipe Advertising Cooperative, Inc. and LFRC OH Adverting Cooperative,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, LFRC Springfield, LLC acquired certain fixed assets from Far From Famous, LLC on April 12, 2022. The total purchase price for this acquisition was approximately $8,500,000. The FDD also notes that the acquisition resulted in goodwill of approximately $600,000, which was largely based on future earnings potential.
It is important to note that this acquisition refers to LFRC Springfield, LLC acquiring assets from Far From Famous, LLC, not the initial acquisition of Famous Recipe Group, LLC by LFR Chicken, LLC. The document does not specify the total purchase price for the initial acquisition of Famous Recipe Group, LLC.
Prospective franchisees should be aware that the FDD provides details on subsequent acquisitions made by Lees Famous Recipe, such as the acquisition of fixed assets from Lumena, LLC in January 2024 for approximately $375,000. However, the original purchase price for the initial acquisition of the brand is not disclosed in this section. Franchisees may want to inquire about the details of the initial acquisition from the franchisor.