Under the Lees Famous Recipe Franchise Agreement, what constitutes an 'Authorized Location'?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS FRANCHISE AGREEMENT ("Agreement") is made and entered into this day |
|---|
| of, 20, (the "Effective Date") between Lee's Franchisor LLC, a Delaware |
| limited liability company, with a principal place of business at 1270 N. Eglin Parkway, Suite C-14, |
| Shalimar, Florida 32579 ("we" or "us"), and, a |
| [corporation / limited liability company / partnership] with a principal |
| place of business at ("you"). |
| INTRODUCTION |
| A. |
| We have developed and own a System (as defined below) relating to the development and |
| operation of quick service restaurants that sell chicken, biscuits, and other approved food and beverage |
| products sold by Lee's Famous Recipe Restaurants. |
| B. |
| We own the "Lee's Famous Recipe®," "Famous Recipe®," and "Lee's: Famous for |
| Chicken®" service marks, and other related trademarks and service marks as we periodically may modify |
| (the "Marks") used in operating the System. |
| C. |
| We grant qualified persons the right to develop, own and operate a Franchised Business |
| (as defined below) at a specific location. |
| D. |
| You desire to obtain the right to develop and operate a Restaurant using the System at a |
| specific location. |
| AGREEMENTS |
| In consideration of the mutual covenants and agreements stated below, the parties agree as follows: |
| 1. |
| DEFINITIONS |
| A. |
| "Annual Conference" means |
| any annual franchise conference that we sponsor or |
| designate. |
| B. |
| "Authorized Location" means the location of your Restaurant that we review and approve |
| in writing. |
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the 'Authorized Location' is defined as the location of the restaurant that Lees Famous Recipe reviews and approves in writing. The franchise agreement grants the franchisee a license to operate a Lees Famous Recipe Restaurant at this approved site, using the brand's trademarks and system. The specific location and designated territory will be identified in Exhibit A of the franchise agreement, or alternatively, in Exhibit B, where the parties agree on a geographic area for establishing the restaurant, subject to Lees Famous Recipe's written consent, within three months of the agreement date.
The franchisee must secure an authorized location within the stipulated timeframe; failure to do so grants Lees Famous Recipe the right to terminate the franchise agreement. The franchise is personal and restricted to the authorized location, meaning the franchisee cannot operate or sell products using Lees Famous Recipe's marks from any other location without a separate franchise agreement. This also means that sales through other channels of distribution, like the internet, are not included in the agreement.
The franchisee cannot relocate the restaurant without prior written consent from Lees Famous Recipe. If relocation is approved, the new location must meet all current standards and specifications for Lees Famous Recipe Restaurants. The franchisor will not unreasonably withhold consent, but may require certain conditions to be met, including advance written notice, securing an approved site and lease, payment of a relocation fee, reimbursement of relocation costs, and actions to de-brand the former location. In cases of involuntary relocation due to unforeseen circumstances like fire or condemnation, the franchisee has up to twelve months to reopen at a new authorized location within the designated territory.