In the context of the Apricot Lane Location Option Agreement, what is the 'Option Location' referring to?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| Country Visions, Inc. ("FRANCHISOR") and |
|---|
| ("FRANCHISEE") having entered into a Country Visions, Inc. Franchise Agreement dated |
| (the "Franchise Agreement"), and in accordance with the terms of the Franchise |
| Agreement, do hereby covenant and agree as follows: |
| 1. |
| FRANCHISEE has been awarded the franchise license for the franchise location |
| identified in Section 1 of the Franchise Agreement. |
| 2. |
| FRANCHISEE has requested the opportunity to develop an additional |
| Specialty Store. FRANCHISEE has identified |
| (the "Option Location") as the desired site for the additional store. FRANCHISEE has requested |
| an option on developing another Specialty Store at the Option Location. |
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- FRANCHISOR hereby grants to FRANCHISEE an option ("Option") to develop a Specialty Store at the Option Location which Option shall expire twelve (12) months after this Location Option Agreement is executed by FRANCHISOR. For this Option, FRANCHISEE shall pay FRANCHISOR an Option Fee of Fifteen Thousand Dollars ($15,000) upon the execution of this Exhibit. Five Thousand Dollars ($5,000) of the Option Fee paid shall be credited without interest towards the applicable initial franchise fee for the Option Location pursuant to the terms of the then-current Country Visions, Inc. Franchise Agreement for the Option Location (the "Option Franchise Agreement"), provided it is executed by FRANCHISEE before expiration of the Option. The balance of the initial franchise fee for the Option Location shall be paid upon execution of the Option Franchise Agreement.
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- If FRANCHISEE does not exercise this Option within twelve (12) calendar months after the date of this Agreement, the option shall automatically expire. The Option Fee shall be retained by FRANCHISOR and deemed fully earned by FRANCHISOR for holding the Option Location off the market.
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- FRANCHISEE understands that in order to exercise the Option for the Option Location and to be offered another franchise under the Option Franchise Agreement, FRANCHISEE must be in full compliance with the terms of the Franchise Agreement, have no history of defaults under the Franchise Agreement, the Premises lease or any other agreement which may be ancillary to the Franchised Business and the Franchise Agreement. In addition, FRANCHISEE must provide proof, in the form of a pre-approved financing package, of FRANCHISEE's financial ability to develop the Option Location. Such proof must be provided prior to the execution of the Option Franchise Agreement.
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- FRANCHISOR reserves the right to terminate the Option if at any time FRANCHISEE is found in default of the Franchise Agreement or the Premises lease. This Option
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the 'Option Location' refers to a specific site where the franchisee has the option to develop a Specialty Store. The franchisee pays Apricot Lane a $15,000 Option Fee for this option, which expires 12 months after the Location Option Agreement is executed. If the franchisee exercises the option, $5,000 of the Option Fee is credited towards the initial franchise fee for that location.
However, Apricot Lane does not guarantee that the Option Location will be available for development. The franchisee is solely responsible for securing the location. The grant of the option does not constitute final approval of the location by Apricot Lane. The franchisee must comply with the terms of the Option Franchise Agreement to secure the site, lease it, and construct the store, obtaining all necessary approvals from Apricot Lane.
To exercise the option, the franchisee must be in full compliance with the existing Franchise Agreement and demonstrate the financial ability to develop the Option Location. Apricot Lane reserves the right to terminate the option if the franchisee defaults on the Franchise Agreement or the premises lease. The option is not assignable by the franchisee.