What is the definition of 'Option' in the context of an Apricot Lane franchise?
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 othe
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, an 'Option' refers to an opportunity granted to the franchisee to develop a Specialty Store at a specific 'Option Location'. This option is valid for a period of twelve months after the Location Option Agreement is executed by Apricot Lane. To secure this option, the franchisee must pay Apricot Lane an Option Fee of $15,000 upon execution of the agreement.
Of the $15,000 Option Fee, $5,000 will be credited, without interest, towards the initial franchise fee for the Option Location, provided the franchisee executes the Option Franchise Agreement before the option expires. The remaining balance of the initial franchise fee for the Option Location is due upon execution of the Option Franchise Agreement. If the franchisee does not exercise the option within the twelve-month period, the option automatically expires, and Apricot Lane retains the entire Option Fee as compensation for holding the Option Location off the market.
To exercise the Option and be offered another franchise under the Option Franchise Agreement, the franchisee must be in full compliance with the terms of the existing Franchise Agreement and have no history of defaults under the Franchise Agreement, the Premises lease, or any other ancillary agreement. Additionally, the franchisee must provide proof of their financial ability to develop the Option Location, in the form of a pre-approved financing package, before executing the Option Franchise Agreement. Apricot Lane reserves the right to terminate the Option if the franchisee defaults on the Franchise Agreement or the Premises lease, and the Option automatically terminates if the existing Franchise Agreement is terminated for any reason.