ITEMS 5–7 · 2026 FDD
How much is a Lee's Famous Recipe franchise?
Per Lee's Famous Recipe's 2026 FDD, the initial franchise fee is $35,000 (Item 5) and the total initial investment runs $641K–$2.6M (Item 7); once open, you pay an ongoing royalty of 5.0% of gross sales (Item 6).
$35,000
one-time, to buy in
5.0%
of gross sales, ongoing
$641K–$2.6M
franchisor's own estimate
| Cost line | Lee's Famous Recipe | Sector median |
|---|---|---|
| Initial franchise fee ITEM 5 | $35,000 | $35,000 |
| Ongoing royalty ITEM 6 | 5.0% | 5.5% |
| Total initial investment ITEM 7 | $641K–$2.6M | $375K–$957K |
MEDIANS: LATEST FDD FILINGS (≤24 MONTHS OLD) OF 186 FOOD & DINING SYSTEMS · FULL FOOD & DINING BENCHMARK →
The buy-in is the smaller number. The larger one is the drag: 5.0% of every sale leaves before rent, labor, or your salary — so breakeven depends on volume you cannot know from the FDD; use the Item 19 figures as a starting point, not a promise.
To open (Item 7)
$641K–$2.6M
all-in investment range
Franchise fee (Item 5)
$35,000
upfront, one-time
Royalty (Item 6)
5%
of sales, ongoing
Starts at a placeholder of $500K — a round figure for the sector, not from Lee's Famous Recipe’s filings. Set your own figure and check it against this brand's Item 19 and what owners tell you.
Royalty you'd pay / yr
$25K
5% of sales, before profit
Over a 10-yr term
$250K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on labor, rent, supplies, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for Lee's Famous Recipe with a buyer-paid CPALee's Famous Recipe cost questions, answered from the filing
How much is a Lee's Famous Recipe franchise?
Per Lee's Famous Recipe's 2026 FDD, opening a franchise requires an initial franchise fee of $35,000 (Item 5) and a total initial investment of $641K–$2.6M (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.
What royalty does Lee's Famous Recipe charge?
Lee's Famous Recipe charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD. The median across 186 food & dining systems tracked here is 5.5%.
Does Lee's Famous Recipe tell you what franchisees earn?
Partly — Lee's Famous Recipe makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $1.7M. Unit revenue is not owner profit: subtract royalties, ad fund, rent, labor, and debt service.
The Lee's Famous Recipe validation checklist
questions built from this brand's own filings · read them all on the profile
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if Lee's Famous Recipe’s numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Lee's Famous Recipe’s numbers, including talking you out of a bad deal.