What is the definition of 'Option Location' 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 other agreement which may be ancillary to the Franchised Business and the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, an 'Option Location' refers to a prospective site where a franchisee has the option to develop a Specialty Store. The franchisor grants the franchisee an option to develop a store at this location, which expires 12 months after the Location Option Agreement is executed.
To secure this option, the franchisee pays Apricot Lane an Option Fee of $15,000 upon execution of the agreement. A portion of this fee, specifically $5,000, is credited 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 is due upon execution of this agreement.
However, the granting of this option does not guarantee the location's availability or final approval. The franchisee bears the responsibility for securing the site, negotiating the lease, and managing the construction, all while adhering to the terms outlined in the Option Franchise Agreement and obtaining the necessary approvals from Apricot Lane. If the franchisee fails to exercise the option within the 12-month period, the option expires, and Apricot Lane retains the Option Fee as compensation for holding the location off the market.