In the event of the death or permanent incapacity of an Apricot Lane franchisee, what section of the franchise agreement outlines the conditions for transferring the interest to a new owner?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Within six (6) months after the death or permanent incapacity of FRANCHISEE, (or if FRANCHISEE is not an individual, the death or incapacity of any owner of a fifty percent (50%) interest or controlling interest in FRANCHISEE or the Franchised Business or of the owner or general partner with the principal responsibility for the operation and management of the Franchised Business) the interest of the decedent or incapacitated FRANCHISEE or owner must be transferred to a new owner subject to satisfaction of all conditions provided in Section 20.C provided that FRANCHISOR shall permit the heirs, personal representative, executor or conservator to continue operating the Franchised Business subject to compliance with all terms and conditions of this Agreement during that six (6) month period. If the spouse, children, heirs or beneficiaries of the dead or incapacitated individual wish to assume the interest of that individual, they may apply to do so, but a transfer to any such individual must satisfy all of the conditions of Section 20.C above except that FRANCHISOR will not charge the transfer fee. For purposes of this Agreement, "incapacity" shall be defined as the inability of the individual to operate or oversee the operation of the Franchised Business on a regular basis by reason of any continuing physical, mental or emotional incapacity, chemical dependency or other limitation.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the conditions for transferring the franchise interest in the event of death or permanent incapacity of the franchisee are detailed in Section 20.C of the franchise agreement. Specifically, Section 20.D addresses the death or incapacity of the franchisee.
Within six months of the death or permanent incapacity of the franchisee (or a controlling owner), the interest must be transferred to a new owner. This transfer is subject to meeting all the conditions outlined in Section 20.C. During this six-month period, Apricot Lane will allow the heirs, personal representative, executor, or conservator to continue operating the franchised business, provided they comply with all the terms and conditions of the franchise agreement.
If the spouse, children, heirs, or beneficiaries wish to assume the franchisee's interest, they can apply to do so. However, any transfer to these individuals must also satisfy all conditions of Section 20.C, except that Apricot Lane will waive the transfer fee. The agreement defines "incapacity" as the inability to regularly operate or oversee the franchised business due to any continuing physical, mental, or emotional incapacity, chemical dependency, or other limitation.