Under what conditions can a Lees Famous Recipe franchisee renew their franchise term?
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 franchisee can renew their franchise agreement for an additional 15-year term if they are in good standing. The initial term for a Lees Famous Recipe franchise is 15 years.
To renew the franchise agreement, the franchisee must provide advance notice of their intent to renew. They cannot be in default within the 24 months before the initial term's expiration. The franchisee must also comply with the current Lees Famous Recipe Franchise Agreement, which may have materially different terms and conditions than the original agreement. Additionally, franchisees must satisfactorily complete any new or refresher training programs that Lees Famous Recipe requires at the time of renewal.
Further conditions for renewal include signing a new franchise agreement, remodeling the restaurant to meet Lees Famous Recipe's then-current standards and specifications, providing proof that they will maintain possession of the restaurant premises, paying a renewal fee, and signing a general release of claims. These conditions ensure that the Lees Famous Recipe franchise remains up-to-date and compliant with the franchisor's standards, protecting the brand's reputation and consistency.