Under what conditions can a Lees Famous Recipe franchisee renew or extend their franchise term?

According to Lees Famous Recipe's 2025 Franchise Disclosure Document, a franchisee can renew their franchise agreement for an additional 15-year term if they are in good standing. The initial franchise term is 15 years. To renew, the franchisee must provide advance notice and must not be in default within the 24 months before the initial term's expiration.

Additional requirements for renewal include complying with the current Lees Famous Recipe Franchise Agreement, satisfactorily completing any new or refresher training programs, and signing a new agreement. This new agreement may contain terms and conditions that are materially different from the original franchise agreement. The franchisee must also provide proof that they will maintain possession of the restaurant premises and remodel the restaurant as necessary to comply with Lees Famous Recipe's then-current standards and specifications.

Furthermore, the franchisee is required to pay a renewal fee and sign a general release of claims. These conditions are fairly standard in the franchise industry, as franchisors typically want to ensure that franchisees are up-to-date with brand standards and are committed to the system before granting a renewal. The potential for materially different terms in the new agreement is something a prospective franchisee should carefully consider, as it could impact the profitability and operational requirements of the franchise.