What activities are prohibited by the non-competition covenant after the Apricot Lane franchise is terminated or expires?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.B in Franchise Agreement | For 2 years after expiration or termination for any reason, you may not own or be involved in competing business within your former Territory or within 10 miles of any other Store. (Subject to state law.) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, after the franchise is terminated or expires, the franchisee is subject to a non-competition covenant. This covenant restricts the franchisee's activities for a period of 2 years following the termination or expiration of the franchise agreement, regardless of the reason for termination.
The restriction prevents the franchisee from owning or being involved in any competing business. This prohibition applies within the franchisee's former territory. It also extends to a 10-mile radius of any other Apricot Lane store.
It is important to note that the enforceability of non-competition covenants can vary by state law. Prospective franchisees should consult with legal counsel to understand the specific restrictions and their enforceability in their state.