Lee’s Famous Recipe Chicken Franchise Costs & Fees

Year Business Began: 1966

Franchising Since: 1967

Headquarters: Shalimar, Florida

Estimated Number of Units: 130

Franchise Description: The franchisor is Lee’s Franchisor LLC. Lee’s Famous Recipe franchisees operate a quick service restaurant at a designated location featuring a menu of chicken, biscuits, and other complementary items.
Training Overview: Franchisees (or the operating principal if the franchisee is an entity) and three managers must complete, to the franchisor’s satisfaction, the training program at a designated training restaurant, or other approved location the franchisor chooses, which lasts for approximately 6 to 8 weeks, depending on the extent and nature of the franchisee’s prior restaurant industry experience. Franchisees must at all times employ at least three managers in each of their restaurants who has successfully completed the training program (as determined by the franchisor) or a comparable program that the franchisor approves. The franchisor may require that franchisees and any key management personnel attend all supplemental and refresher training programs that it designates for up to seven days each calendar year, in addition to any annual or regional conferences it designates. Franchisees may also be required to purchase training videos or other instructional material from the franchisor from time to time.

Territory Granted: Franchisees will receive a designated territory surrounding the restaurant location. The designated territory will be delineated by a mile-radius or other boundaries as the franchisor determines in its sole discretion. The size of the designated territory depends on (1) the type of restaurant franchisees will be operating and (2) the population density, zip codes, counties, median household income and economic development. Franchisees will not receive an exclusive territory because the franchisor reserves the right to operate, or grant others the right to operate Lee’s Famous Recipe restaurants at “non-traditional venues” within the designated territory. Franchisees may offer catering services in the designated territory to the extent the franchisor permit them to do so in writing, and only in compliance with the Franchise Agreement, the operations manual and other policies and requirements the franchisor imposes.

Obligations and Restrictions: If franchisees are sole proprietors, they are obligated to participate in the direct operation of the restaurant. If more than one individual or a legal entity such as a corporation, partnership or limited liability company owns the franchise, they must designate and retain an individual to serve as the operating principal of the restaurant. The operating principal must be approved by the franchisor and must have at least a 5% ownership interest in the restaurant or a 5% profit participation in the restaurant. The operating principal must have his or her primary residence within a reasonable driving distance of the restaurant. The operating principal must attend and complete required training. Franchisees must offer and sell in their restaurant all, and only, those products and services that the franchisor has approved. Franchisees may not offer for sale or otherwise handle alcoholic or intoxicating beverages.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If franchisees are in good standing, they may renew for an additional 15-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee any promissory note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Training Fee	$5,000	$5,000
Training Expenses	$15,000	$22,000
Restaurant Opening Campaign	$10,000	$10,000
Real Estate (leased or purchased)	Varies
Site Work	$0	$500,000
Building and Improvements	$150,000	$1,200,000
Equipment, Furniture and Signage	$228,700	$389,900
POS System	$35,000	$40,000
Opening Inventory	$6,000	$32,000
Utility Deposits, Permits, Business Licenses and Miscellaneous Opening Costs	$7,500	$50,000
Insurance	$10,000	$20,000
Additional Funds – 3 months	$15,000	$50,000
ESTIMATED TOTAL	$517,200	$2,353,900

 
Other Fees

Type of Fee	Amount
Royalty	5% of gross sales.
Brand Cooperative Advertising Fund Fee	3% of gross sales.
Local Advertising Expenditures	Up to 1% of weekly gross sales.
Regional Advertising Cooperative Fee	Maximum – 2% of annual gross sales.
Technology Fee	Currently, $100 per month.
Proprietary Software License Fee	Currently, $0.
PCI Compliance Program Fee	Currently, $0.
Initial Training Fee	$5,000 for up to 4 attendees. $3,000 for each additional attendee.
Opening Assistance – Additional Days or Additional Trainers	$500 fee per trainer for each additional trainer or each day beyond the initial time the franchisor allots for opening assistance.
Additional Training	The then-current training fee.
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.
Fixture, Equipment, Furniture and Sign Approval Fee	Will vary upon the circumstances, but no greater than $1,000, plus the franchisor’s out-of-pocket costs and expenses, per request.
Conference Fee	$0 for the first two attendees, but our then current conference fee for each additional attendee.
Inspection Fee	$500
Audit Fee	The franchisor’s costs and expenses.
Transfer Fees for Franchise Agreement	50% of the then-current initial franchise agreement.
Relocation Fee	50% of the then-current franchise agreement.
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 an administrative fee of 5%.
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%.
Insufficient Funds Fee	$500 for each instance of insufficient funds or delinquent payment.
Non-Compliance Fee	Will vary under the circumstances.
Management Services Fee	Will vary under the circumstances.
Early Termination Fee	See FDD.

The above information has been compiled from the FDD of Lee’s Famous Recipe Chicken. Year of FDD: 2025.
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