As of the effective date of this Apricot Lane Franchise Disclosure Document, what is the status of the franchise registration in California?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the state, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
This document is effective and may be used in the following states, where the document is filed, registered or exempt from registration, as of the Effective Date stated below:
As required under Section 310.114.1 of the California Code of Regulations, we state:
The California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document.
California Business and Professions Code Sections 20000 through 200043 provide rights to the franchisee concerning termination, transfer or non-renewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. § 101, et seq.).
The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
The Franchise Agreement contains a liquidated damages clause. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable.
You must sign a general release of claims if you renew or transfer your franchise. California Corporation Code Section 31512 voids a waiver of your rights under the franchise investment law (California Corporations Code Section 31000 – 31516). Business and Professions Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043).
Our URL is www.apricotlaneboutique.com. Our web sites have not been reviewed or approved by the California Department of Financial Protection and Innovation. Any complaints concerning the content of these web sites may be directed to the California Department of Financial Protection and Innovation at http://www.dfpi.ca.gov.
The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations. The Commissioner has imposed a fee deferral condition, which requires that we defer the collection of all initial fees from California franchisees until we have completed all of our pre-opening obligations and you are open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open.
Registration of this franchise does not constitute approval, recommendation, or endorsement by the Commissioner.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the document is effective and may be used in California, where it is filed, registered, or exempt from registration, as of the effective date stated in the document. The California Franchise Investment Law necessitates that all proposed agreements relating to the sale of the franchise be delivered alongside the disclosure document.
California law provides franchisees with specific rights regarding termination, transfer, or non-renewal of a franchise, as outlined in California Business and Professions Code Sections 20000 through 200043. If any provision in the Franchise Agreement is inconsistent with this law, the law will take precedence. The Franchise Agreement's provision for termination upon bankruptcy may not be enforceable under federal bankruptcy law. Similarly, a covenant not to compete extending beyond the franchise termination may not be enforceable under California law, and certain liquidated damages clauses may also be unenforceable under California Civil Code Section 1671.
Furthermore, California law voids any waiver of rights under the franchise investment law (California Corporations Code Section 31000 – 31516) and the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043) if a franchisee is required to sign a general release of claims upon renewal or transfer. The California Department of Financial Protection and Innovation does not review or approve Apricot Lane's websites, and any complaints about the website content can be directed to the Department.
The franchisor is required to defer the collection of all initial fees from California franchisees until all pre-opening obligations are completed and the franchisee is open for business due to the Department's determination that the franchisor has not demonstrated adequate capitalization or must rely on franchise fees to fund operations. For franchisees who sign a development agreement, the payment of development and initial fees attributable to a specific unit in the development schedule is deferred until that unit is open. The registration of the Apricot Lane franchise does not constitute approval, recommendation, or endorsement by the Commissioner.