Who approves substitute premises for an Apricot Lane franchise renewal?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE maintains possession of the Premises by timely exercising any renewal option in the manner and by the date required under the lease, or if there is no renewal option under the lease, by entering into a new lease with the lessor for the Premises that shall include the lease clauses required under Section 4.C of this Agreement.
If there is no renewal option and FRANCHISEE cannot through reasonable efforts secure the right to maintain possession of the Premises under a new lease, or if FRANCHISOR notifies FRANCHISEE no later than twelve (12) months before expiration of the term that in its judgment the Franchised Business should be relocated, FRANCHISEE must secure substitute premises approved by FRANCHISOR, in its sole discretion, under a lease that includes the lease clauses required under Section 4.C of this Agreement.
It is fully understood by FRANCHISEE that FRANCHISEE is solely responsible for timely commencing and sustaining efforts needed to either maintain possession of the Premises or to secure substitute premises before expiration of the term and that FRANCHISEE must keep FRANCHISOR fully and timely informed of all such matters;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, if a franchisee cannot secure the right to maintain possession of their current premises under a new lease, or if Apricot Lane believes the Franchised Business should be relocated, the franchisee must secure substitute premises. The approval of these substitute premises rests solely with Apricot Lane, in its discretion. The new lease must also include specific clauses outlined in Section 4.C of the franchise agreement.
This means that an Apricot Lane franchisee seeking to renew their franchise must either maintain their existing location or find a new location acceptable to the franchisor. The franchisee bears the responsibility of keeping Apricot Lane informed about their efforts to secure either the original premises or a substitute location. This includes providing copies of all communications with landlords or other parties regarding the premises and the lease.
For a prospective Apricot Lane franchisee, this highlights the importance of maintaining a good relationship with the landlord and understanding the local real estate market. It also emphasizes the need for clear and consistent communication with Apricot Lane regarding any potential issues with the lease or the premises. The franchisee should proactively address any concerns about the location well in advance of the renewal deadline to allow sufficient time to find and secure an alternative location that meets Apricot Lane's approval.
Ultimately, the franchisee is responsible for ensuring the business remains compliant with Apricot Lane's standards, including the location. Failure to secure an approved location could result in the denial of the franchise renewal, making proactive communication and diligent effort crucial for a successful renewal.