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Lee’s Famous Recipe Chicken Franchise Costs, Profit & Requirements For 2025

by Nick

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.

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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.

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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.

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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.

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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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