Does Apricot Lane allow a franchisee to provide consulting services to a business selling similar merchandise to the Specialty Stores?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE specifically acknowledges that, pursuant to this Agreement, FRANCHISEE will receive valuable training, resources, contacts and Confidential Information, including, without limitation, information regarding the promotional, operational, sales and marketing methods and techniques of FRANCHISOR and the System. For a period of two (2) years after expiration of or after termination of this Agreement for any reason, FRANCHISEE shall not either directly or indirectly, for itself/himself/herself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, engage in, provide management, resources, contacts, vendors or consulting services to, act as a lender for, provide assets to, or have any interest in any business that offers or sells, in any channel of distribution, an assortment of merchandise that is similar to the assortment of merchandise then being carried in the Specialty Stores unless granted prior approval in writing by FRANCHISOR:
- a. Within the Territory;
- b. Within a radius of ten (10) miles of the location of any other Specialty Store, whether franchised or owned by FRANCHISOR; or
- c. Though e-commence where such sales are substantially supported within the Territory (including, but not limited to, support provided by offices, administrative centers, communication centers, warehouses, distribution centers and/or servers located within the Territory).
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee is restricted from providing consulting services to businesses offering similar merchandise as the Specialty Stores for a period of two years after the termination or expiration of the franchise agreement. This restriction applies whether the franchisee acts directly or indirectly, for themselves or in conjunction with others.
The restriction specifically prohibits the franchisee from owning, maintaining, engaging in, providing management, resources, contacts, vendors, or consulting services to, acting as a lender for, providing assets to, or having any interest in such a business. This broad prohibition covers various forms of involvement with competing businesses, ensuring that former franchisees do not leverage their knowledge and resources gained from Apricot Lane to benefit competitors.
The geographic scope of this restriction includes the franchisee's former territory, an area within a 10-mile radius of any other Apricot Lane store (whether franchised or company-owned), and through e-commerce where sales are substantially supported within the territory. This comprehensive restriction aims to protect Apricot Lane's market share and confidential information by preventing former franchisees from directly competing or assisting competitors in the specified areas. Franchisees would need written approval from Apricot Lane to engage in such activities during the restricted period.