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Here’s the Real Lee’s Famous Recipe Chicken Franchise Cost
Searching the internet for the whole breakdown of Lee’s Famous Recipe Chicken franchise cost? Congratulations, your search is now over. Let’s list down all the prices and details you need to know.
Lee’s Famous Recipe Chicken business started in 1966 and has been franchising since 1967 with 130 estimated units to date. The franchisor for the brand is Famous Recipe Group LLC. Its franchisees operate a quick-service restaurant featuring a menu of the famous chicken recipe, biscuits, and other complementary menu items.
Training Program:
The following persons are required to complete the training program up to the franchisor’s satisfaction:
- Franchisee or operating principal if ever the franchisee is an entity.
- The franchise’s general manager.
- Two assistant managers.
The training will be designated at a franchisee-owned training restaurant or any other approved location that the franchisor chooses. The training program then lasts for six to eight weeks, depending on the franchisee’s prior restaurant industry experience.
Franchise Territory:
As per the Franchise Agreement, the franchisee will be granted the right to operate Lee’s Famous Recipe restaurant at a specific location.
- A traditional stand-alone location has a protected area.
- Meanwhile, a streamlined location has a one-mile radius with the franchise’s premises as the center.
- For the non-traditional location, the franchisor, under its sole discretion, will determine the protected area.
The franchisor’s decision for the non-traditional location will also be based upon anticipated customer count and may limit the protected area within the location.
What’s Expected of the Franchisee:
- If the franchisee is a sole proprietor, they must participate in the direct operation of the restaurant.
- Suppose the franchisee is more than one individual or a corporation, partnership, or LLC. In that case, it’s required to designate and retain an individual to serve as the restaurant’s operating principal.
- As for the operating principal, a primary residence within a reasonable driving distance from the restaurant is required.
- At all times, franchisees are required to employ at least one general manager and two assistant managers at each of their franchise restaurants.
- Each managing personnel should complete training or any comparable program that the franchisor approves of.
- The restaurant should be used for operations of Lee’s Famous Recipe restaurant.
- Also, franchisees must keep the restaurant open and in regular operation for the franchisor’s specified hours, either in manuals or writing.
- Franchisees must operate the restaurant in compliance with the franchise manual’s methods, standards, and specifications.
Franchise Terms of Agreement and Renewal:
The franchise’s initial length of the term consists of 20 years. But if franchisees are in good standing by the end of the initial term, an additional 20-year term renewal is possible.
Did You Know?
Before diving into the specifics of Lee’s Famous Recipe Chicken franchise cost, let’s get to know the business more via these fun facts!
- It’s almost 55 years since ‘Lee’ became famous for his chicken recipe.
- Lee Cummings, one of the founders, is the nephew of KFC founder Colonel Harland Sanders. Therefore, creating famous chicken recipes must have been in their blood!
- The chain for Lee’s Famous Chicken Recipe has been sold at least four times. So far, the chain is now under Famous Recipe Group LLC.
Lee’s Famous Recipe Chicken Franchise Cost
Now that we’re done listing the details, you should know about the franchise. Finally, let’s move on to Lee’s Famous Chicken Recipe franchise cost. Note that the information below is compiled from the 2020 FDD of Lee’s Famous Chicken Recipe.
| Name of Fee | Low | High |
|---|---|---|
| Development Fee | $15,000 | $15,000 |
| Initial Franchise Fee | $15,000 | $20,000 |
| Training Fee | $5,000 | $5,000 |
| Training Expenses | $15,000 | $22,000 |
| Grand Opening Advertising | $5,000 | $5,000 |
| Real Estate either leased or purchased | Varies. | |
| Building and Improvements | $76,800 | $734,900 |
| Equipment, Furniture and Signage | $59,500 | $227,200 |
| POS System | $17,200 | $36,100 |
| Opening Inventory | $6,000 | $22,200 |
| Utility Deposits, Permits, Business Licenses and Miscellaneous Opening Costs | $3,500 | $50,000 |
| Insurance | $9,000 | $18,000 |
| Additional Funds – 3 months | $15,000 | $30,000 |
| ESTIMATED TOTAL | $241,500 | $1,185,400 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty | 4% of gross sales for traditional stand-alone locations or streamlined locations, but 6% of gross sales 3 for non-traditional locations. |
| Cooperative Advertising Fund Fee | 2% of gross sales. |
| Local Advertising Expenditures | Minimum – 3% of annual gross sales. |
| Local, Regional or National Advertising Cooperative Fee | Minimum – 2% of annual gross sales. |
| Training Fee for Additional Attendees | $3,000 for each additional attendee. |
| Opening Assistance – Additional Days or Additional Trainers | $300 fee per trainer for each additional trainer or each day beyond 10 consecutive days. |
| Supplier and Product Approval Fees | $500 per supplier or item. Plus, the franchisor’s cost of evaluating and investigating any request for approval of a new or additional supplier or product. |
| Audits | The franchisor’s cost of inspection of audit. |
| Transfer Fees for Franchise Agreement and Market Development Agreement | The then current transfer fee being charged by the franchisor. $5,000 per location to be developed for a market development agreement and $7,500 for each franchise agreement. |
| Extension Fee for Market Development Agreement | The extension fee is $5,000 for one six-month extension of the development schedule. |
| Additional Site Visit Fee | $1,500 per site visit. |
| Training Materials | $500 minimum. |
| Marketing and Advertising Promotional/Point of Purchase Materials and System Promotions | $500 minimum. |
| Insurance | The franchisor’s cost of obtaining insurance coverage and a reasonable administrative fee that it sets. |
| Costs and Attorneys’ Fees | The franchisor’s costs and expenses. |
| Indemnification | The losses and expenses the franchisor incurs. |
| Late Charges | Highest rate permitted by applicable law with a maximum of 18%. |
| Renewal Fee | The then-current franchise fee. |
| Stipulated Damages | Equal to royalty fees and cooperative advertising fees payable to the franchisor during the last 156 weeks immediately preceding termination. |
Wrap Up
To conclude, additional fees may occur depending on the leasing terms of your real estate location. It’s also important to know whether you’ll be on a lease or the lot will be purchased. Now, we know the breakdown of Lee’s Famous Recipe Chicken franchise cost. For more information on other franchises to add to your business venture, visit Franchise How.