What is the definition of 'Option Franchise Agreement' 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 the 2025 Apricot Lane Franchise Disclosure Document, an Option Franchise Agreement relates to a franchisee's option to develop a Specialty Store at a specific location. The franchisee pays a $15,000 Option Fee for this option, which expires 12 months after the Location Option Agreement is executed by Apricot Lane.
Of the $15,000 option fee, $5,000 can be credited, without interest, towards the initial franchise fee for the Option Location, provided the Option Franchise Agreement is executed before the option expires. The remaining balance of the initial franchise fee is due upon the execution of the Option Franchise Agreement.
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, have no history of defaults, and provide proof of 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, and the option automatically terminates if the existing Franchise Agreement is terminated for any reason.