What is the deadline for an Apricot Lane franchisee to initiate a maintenance program after receiving notice of a deficiency from the franchisor?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
9 of this Agreement.
E. Restrictions After Termination and/or Expiration
The provisions of Section 9 shall survive the expiration or termination of this Agreement.
SECTION 10: MODIFICATION OF THE SYSTEM
A. Maintenance of Premises
FRANCHISEE shall maintain the condition and appearance of the Franchised Premises consistent with FRANCHISOR's standards. FRANCHISEE shall maintain the Premises as is from time to time required to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete equipment, fixtures, signs, decor and repair of the exterior and interior of the Franchised Business. If at any
time in FRANCHISOR's judgment the general state of repair or the appearance of the Franchised Premises or its equipment, fixtures, signs or decor does not meet FRANCHISOR's standards therefore, FRANCHISOR may so notify FRANCHISEE, specifying the action to be taken by FRANCHISEE to correct such deficiency. If FRANCHISEE fails or refuses to initiate within thirty (30) days after receipt of such notice, and thereafter continue, a bona fide program to complete any required maintenance, FRANCHISOR shall have the right, in addition to all other remedies, to enter upon the Franchised Premises and effect such maintenance on behalf of FRANCHISEE and FRANCHISEE shall pay the entire costs thereof on demand.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, if Apricot Lane determines that the condition or appearance of a franchised location does not meet their standards, they will notify the franchisee, specifying the required corrective actions. The franchisee then has thirty (30) days from the receipt of this notice to begin a bona fide program to address the deficiencies.
This means that a prospective Apricot Lane franchisee needs to be prepared to act quickly if they receive a notice of deficiency from the franchisor. They must initiate a maintenance program within 30 days of receiving the notice. Failure to do so can result in Apricot Lane taking action to correct the deficiencies themselves, with the franchisee responsible for covering all associated costs.
The FDD also states that the franchisee's required expenditures for maintenance or repairs under this paragraph shall not exceed an amount greater than one percent (1%) of the franchisee's annual gross revenues or Five Thousand Dollars ($5,000), whichever is less, per calendar year. This provides some limit to the financial burden of required maintenance, but franchisees should still budget for potential maintenance costs to ensure compliance with Apricot Lane's standards.
Overall, this policy emphasizes the importance of maintaining Apricot Lane's brand standards and provides a mechanism for the franchisor to enforce those standards. Franchisees should be aware of this requirement and prepared to invest in necessary maintenance to avoid potential intervention by the franchisor.