Lee'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.

The 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.

Lee's Famous Recipe has been involved in 0 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

No, the Lee's Famous Recipe franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Lee'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.

Lee'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%.

The 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.

According 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).

The 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.

Lee'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).

No, 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.

Lee'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.

Yes, 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.