16 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
The total initial investment to open a Lee's Famous Recipe franchise ranges from $517K to $2.4M (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Lee's Famous Recipe is $35K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Lee's Famous Recipe 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
No, Lee's Famous Recipe does not require franchisees to have dedicated real estate (2025 FDD). This can significantly reduce startup costs and ongoing overhead.
View full investment analysisLee's Famous Recipe charges a royalty fee of 5.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Lee's Famous Recipe franchise is approximately 8.0% of gross sales (2025 FDD). This includes the royalty fee, a 3.0% marketing/advertising fund contribution, a $100/month technology fee, and other recurring charges.
View full fees analysisLee's Famous Recipe has been involved in 0 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.
View full litigation analysisNo, the Lee's Famous Recipe franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisLee's Famous Recipe offers protected territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.
View full territory analysisLee's Famous Recipe currently operates 126 locations (2025 FDD) (93 franchised, 33 company-owned). The system grew by 2.4% over the past year. The 3-year compound annual growth rate is -0.5%.
View full growth analysisThe 1-year franchisee turnover rate for Lee's Famous Recipe is 1.6% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisAccording to the Lee's Famous Recipe FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $1.7M (average: $1.8M).
View full financials analysisThe initial franchise agreement term for Lee's Famous Recipe is 15 years (2025 FDD). Franchisees can renew 1 time for 15-year periods. The total potential term is 30 years.
View full contract analysisLee's Famous Recipe's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 5 miles of the former location (2025 FDD).
View full legal analysisNo, Lee's Famous Recipe's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation. The agreement includes a jury trial waiver.
View full legal analysisLee's Famous Recipe provides 320 hours of initial training over approximately 7 weeks (2025 FDD). Ongoing field support is provided on a as-needed basis.
View full support analysisYes, Lee's Famous Recipe provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
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