Can Apricot Lane designate sources that a franchisee must use?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
and specifications. We may limit the number of approved suppliers with whom you may deal, designate sources that you must use and/or refuse any of your requests to approve a supplier or merchandise for any reason, including that we have already designated an exclusive source (which might be us or our affiliate) for a particular merchandise, goods or services or if we believe that doing so is in the best interests of the COUNTRY VISIONS system.
You must purchase certain specified products and services from us (or our affiliates), including software, web marketing, the gift card program, store merchandise, visual merchandise, supplies, and certain construction and improvement activities from our approved suppliers. COUNTRY VISIONS does not permit you to contract with suppliers outside of our approved suppliers.
If there are no specifications or standards addressing the particular merchandise, product or materials you wish to offer or use, you must nevertheless ensure that all merchandise, products and materials sold or used in the Franchised Business are of a high quality and consistent with our image. We may in our sole discretion require you to discontinue offering or using any merchandise, product or materials that in our opinion are inconsistent with this requirement. We do not currently maintain any procedure for you to obtain our approval of any item that is not covered by our specifications and standards or which is not on our list of approved merchandise or suppliers.
Insurance
All of your insurance policies must meet our standards and specifications stated in the Confidential Operations Manual. Currently we have designated InterWest Insurance Services as our preferred provider. After obtaining a quote for required insurance from InterWest Insurance Services you may solicit quotes from other insurance companies as well. InterWest will then be given the right to match any other quotes and you are required to use InterWest Insurance Services if it provides competitive prices to you. We do not collect any rebate for insurance sold to you by InterWest Service.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the company can designate sources that franchisees must use. Apricot Lane may limit the number of approved suppliers, designate sources franchisees must use, and/or refuse a franchisee's request to approve a supplier or merchandise for any reason, including designating an exclusive source for particular merchandise, goods, or services. This gives Apricot Lane significant control over the supply chain and product offerings within the franchise system.
Apricot Lane franchisees are required to purchase certain specified products and services from Apricot Lane or its affiliates. These include software, web marketing, the gift card program, store merchandise, visual merchandise, supplies, and certain construction and improvement activities from approved suppliers. Franchisees are not permitted to contract with suppliers outside of Apricot Lane's approved suppliers. This requirement ensures consistency and quality control across all Apricot Lane locations, but it also limits the franchisee's autonomy in sourcing products and services.
Furthermore, franchisees must carry merchandise from vendors that Apricot Lane determines consistently account for a significant amount of sales. Apricot Lane reserves the right to issue specifications about the amount and variety of such merchandise. If Apricot Lane develops private-label or exclusive merchandise, franchisees must carry it and keep a representative selection of the products at all times. This ensures that franchisees offer products that align with the brand's image and meet customer demand, but it also reduces the franchisee's flexibility in choosing their inventory.
Apricot Lane also requires franchisees to participate in a gift card program administered by Ceridian-Stored Value Solutions, purchase computer hardware and software designated by them, and contract directly with a visual merchandiser selected and scheduled by Apricot Lane from its approved supplier list. These requirements further restrict the franchisee's choice of vendors and services, emphasizing the importance of adhering to Apricot Lane's standards and systems.