What is the deadline for an Apricot Lane franchisee to open their business after executing the Franchise Agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall commence operation of the Franchised Business not later than six (6) months after execution of this Agreement or if FRANCHISEE has an Open License under Exhibit A, within twelve (12) months after an approved site is secured by FRANCHISEE, unless a written extension of time is granted by the FRANCHISOR in its sole discretion. Prior to opening, FRANCHISEE shall have complied with all of FRANCHISOR's pre-opening standards and specifications and FRANCHISOR may require a delay of any opening if FRANCHISEE fails to do so. If FRANCHISEE for any reason fails to commence operation as herein provided, such failure shall be considered a material default for which FRANCHISOR may (but is not obligated to) terminate this Agreement as herein provided.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee must commence operation of their franchised business within six months after the execution of the Franchise Agreement. However, if the franchisee has an Open License, as detailed in Exhibit A, they have twelve months after securing an approved site to begin operations.
Apricot Lane also stipulates that this timeline is contingent upon the franchisee complying with all of the franchisor's pre-opening standards and specifications. Failure to meet these standards may result in a delay in the store's opening. The franchisor retains the right to grant a written extension of time at its sole discretion, providing some flexibility in the opening timeline if unforeseen circumstances arise.
Failure to commence operations within the specified timeframe, without an approved extension, constitutes a material default under the Franchise Agreement. This gives Apricot Lane the option to terminate the agreement, although they are not obligated to do so. This clause underscores the importance of adhering to the agreed-upon timeline and fulfilling all pre-opening requirements to maintain a good standing with the franchisor.