What constitutes repudiation of obligations under the Apricot Lane franchise agreement that would lead to immediate termination?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall terminate without further action by FRANCHISOR or notice to FRANCHISEE if FRANCHISEE:
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- Fails or refuses to pay any amounts due FRANCHISOR or FRANCHISOR's affiliate(s) or agents or otherwise under this Agreement or fails or refuses to pay any amounts due on any account or contract of FRANCHISEE that has been guaranteed by FRANCHISOR and does not correct such failure or refusal within ten (10) business days after written notice of such failure is delivered to FRANCHISEE;
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- Fails or refuses to comply with any other provision of this Agreement or of any other Agreement with FRANCHISOR or its affiliate(s), or any mandatory specification, standard or operating procedure prescribed in the Confidential Operations Manual or otherwise in writing, and does not correct such failure within thirty (30) days (or such additional period of time necessary to effect cure not to exceed sixty (60) days and only if FRANCHISEE provides proof acceptable to FRANCHISOR that it has made all reasonable efforts to correct such failure and will continue to make all reasonable efforts to cure until a cure is effected);
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchise agreement can be terminated without further notice if the franchisee fails to fulfill certain obligations and does not correct those failures within specified timeframes. Specifically, immediate termination occurs if the franchisee fails or refuses to pay amounts due to Apricot Lane or its affiliates, or fails to pay amounts due on any account guaranteed by Apricot Lane, and does not correct this within ten business days after receiving written notice.
Additionally, immediate termination can occur if the franchisee fails or refuses to comply with any other provision of the Franchise Agreement, agreements with Apricot Lane or its affiliates, or mandatory specifications outlined in the Confidential Operations Manual or in writing, and does not correct such failure within thirty days. An extension of up to sixty days may be granted if the franchisee demonstrates reasonable efforts to correct the failure.
These termination conditions highlight the importance of franchisees maintaining timely payments and adhering to all operational standards and contractual obligations. Failure to do so can result in the immediate loss of the franchise. Prospective Apricot Lane franchisees should carefully review the Franchise Agreement and Confidential Operations Manual to fully understand their obligations and the potential consequences of non-compliance.