Lee’s Famous Recipe Chicken is a fast-casual dining chain known for its flavorful, southern-style fried chicken. The brand was founded in 1966 by Lee Cummings, the nephew of Colonel Harland Sanders—the founder of KFC. Drawing inspiration from family tradition, Lee created his own blend of seasonings and a pressure-cooking technique that would define the brand.
The first Lee’s Famous Recipe Chicken opened in Lima, Ohio. Since then, the franchise has grown to include more than 130 locations across the United States, primarily concentrated in the Midwest and South. It remains committed to quality, offering hand-breaded, honey-dipped, and pressure-cooked chicken made fresh every day.
Lee’s Famous Recipe Chicken Franchise Cost
Franchising with Lee’s Famous Recipe Chicken is relatively affordable compared to other major food chains. The total initial investment can vary based on the location, size of the restaurant, and whether you’re developing a new unit or converting an existing one.
Estimated Initial Investment:
Expense Category | Estimated Cost |
Franchise Fee | $15,000 |
Equipment & Kitchen Setup | $150,000 – $200,000 |
Leasehold Improvements | $100,000 – $250,000 |
Initial Inventory | $10,000 – $20,000 |
Signage and Branding | $10,000 – $30,000 |
Working Capital | $50,000 – $100,000 |
Miscellaneous Opening Costs | $20,000 – $40,000 |
Total Estimated Cost | $355,000 – $655,000 |
The franchise fee of $15,000 is modest, making this franchise attractive to first-time entrepreneurs or experienced operators looking to expand.
Lee’s Famous Recipe Chicken Franchise Conditions
Before applying, prospective franchisees should evaluate whether they meet the brand’s criteria. Lee’s Famous Recipe Chicken sets certain minimum requirements to ensure a successful partnership.
1. Financial Qualifications
Minimum net worth: $500,000
Minimum liquid capital: $150,000
Ability to secure financing if needed
2. Experience and Background
Prior experience in food service or restaurant management is preferred
Strong leadership and team management skills
Business acumen and a willingness to learn the brand’s operational system
3. Commitment to Operations
Full-time involvement is encouraged
Owner-operators are preferred, but multi-unit investors with hired managers are also considered
Dedication to maintaining Lee’s brand standards and customer experience
4. Territory and Location
Lee’s helps evaluate and approve suitable real estate
New units should be located in high-traffic areas with drive-thru access when possible
Conversion of an existing restaurant is also an option and can reduce costs
Lee’s Famous Recipe Chicken Franchise Process
Getting started with a Lee’s Famous Recipe Chicken franchise involves a structured process. The franchise team provides support at each step to help candidates make informed decisions.
Step 1: Initial Inquiry
Visit the official franchise website or contact the development team directly. You’ll receive a Franchise Information Packet which outlines expectations, fees, and support.
Step 2: Application Submission
Submit a franchise application, including your personal and financial background. This helps Lee’s evaluate your eligibility and seriousness as a candidate.
Step 3: Review and Interview
If your application meets the requirements, you’ll be invited for an interview. The corporate team will assess your background, motivation, and goals.
Step 4: Receive the Franchise Disclosure Document (FDD)
You’ll be provided with the FDD, a legal document that outlines all aspects of the franchise relationship. This includes details about fees, obligations, territory, and more. Review it carefully with a legal or financial advisor.
Step 5: Discovery Day
Visit the headquarters or a model store to meet the leadership team, view operations, and ask questions. This is your opportunity to evaluate if the brand aligns with your vision.
Step 6: Sign Franchise Agreement
If both parties agree to move forward, you will sign the Franchise Agreement and pay the initial franchise fee.
Step 7: Site Selection and Construction
With the support of Lee’s real estate and construction teams, you’ll identify a suitable location. Build-out and design will follow Lee’s brand standards.
Step 8: Training Program
Franchisees undergo a comprehensive training program, which includes:
- In-store training for 3-4 weeks
- Operational management
- Food preparation and customer service standards
- Staff hiring and HR practices
Step 9: Grand Opening Support
As you approach launch day, Lee’s provides marketing support and an operations team to ensure a successful opening.
Lee’s Famous Recipe Chicken Franchise Profit
While specific profit figures vary based on location, size, and local economic conditions, Lee’s Famous Recipe Chicken offers a strong potential for profitability. Their established customer base and efficient operating model contribute to positive unit economics.
Revenue Potential
Many Lee’s locations generate $1 million or more in annual sales. Profit margins typically range from 10% to 18%, depending on:
- Food and labor costs
- Real estate rent
- Franchise royalties and marketing fees
Typical Annual Costs
Cost Category | Approximate % of Sales |
Cost of Goods Sold (COGS) | 28% – 32% |
Labor | 25% – 30% |
Rent and Utilities | 8% – 10% |
Royalty Fee | 5% of gross sales |
Marketing Fee | 2% of gross sales |
Other Overheads | 5% – 8% |
Example Profit Scenario
Let’s assume your location earns $1.2 million in annual revenue.
COGS: $360,000
Labor: $300,000
Rent: $96,000
Royalties (5%): $60,000
Marketing (2%): $24,000
Other: $60,000
Total Expenses: $900,000
Estimated Profit: $300,000 (25% margin before taxes)
While not every location will yield this result, proper management, marketing, and customer service can drive strong returns.
Conclusion
Franchising with Lee’s Famous Recipe Chicken offers a chance to build a fulfilling and profitable business rooted in American culinary tradition. With a proven menu, dedicated support team, and favorable cost structure, this franchise is ideal for entrepreneurs who value consistency, community, and customer satisfaction.
As a restaurant owner, I’ve seen firsthand how critical it is to work with a brand that provides not just a product, but a complete support system. Lee’s Famous Recipe Chicken does just that—delivering delicious food, strong unit economics, and a culture of franchisee success.
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