Under what conditions is a Lees Famous Recipe franchisee prohibited from using Generative AI?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not, without our prior written consent, utilize any Generative AI directly or indirectly in the operation of the Restaurant, including without limitation, in advertising, promotion, or marketing of the Restaurant or the Franchised Business, communications with customers, business planning, analysis or optimization, or in any social media.
You acknowledge and agree not to upload or share any Confidential Information (including any inputs of information containing trade secrets, sensitive confidential information or personal information) with any unapproved third-party platforms, including Generative AI, except as authorized in writing by us.
In addition, you will prohibit your employees from using any Confidential Information in Generative AI.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, a franchisee is prohibited from using any Generative AI in the operation of their restaurant without prior written consent from the franchisor. This prohibition extends to all aspects of the business, including advertising, promotion, marketing, customer communications, business planning, analysis, optimization, and social media activities. Generative AI is defined as generative artificial intelligence software, tools, or technologies, including natural language processing, deep learning algorithms, or machine learning models.
This restriction means that a Lees Famous Recipe franchisee must seek and obtain explicit permission from the company before implementing any AI-driven tools or software in their business operations. This includes tools that could automate marketing tasks, analyze customer data, or assist in business planning. The franchisee also acknowledges that they cannot upload or share any confidential information with unapproved third-party platforms, including Generative AI, unless authorized in writing by Lees Famous Recipe.
Furthermore, the franchisee is responsible for ensuring that their employees also adhere to this restriction, preventing them from using any confidential information within Generative AI platforms. Confidential Information includes methods, techniques, formats, marketing and promotional techniques and procedures, specifications, information, recipes, Operations Manual, systems, and knowledge of and experience in the operation and franchising of Lee's Famous Recipe Restaurants.
This policy reflects a cautious approach to emerging technologies, allowing Lees Famous Recipe to maintain control over brand messaging, data security, and operational consistency across all franchise locations. A prospective franchisee should discuss with Lees Famous Recipe what specific types of AI usage might be considered for approval and what data security protocols would need to be in place.