What exhibit in the Apricot Lane franchise agreement contains the Guaranty and Assumption of Obligations that certain owners must execute?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this Agreement, the term "FRANCHISEE" shall include any and all general partners of FRANCHISEE and any and all owners (including shareholders, members, limited partners and other owners) of five percent (5%) or more beneficial or legal interest in FRANCHISEE and/or the Franchised Business, and all successors in interest of FRANCHISEE or any such individual. All such individual partners, shareholders, members and owners shall execute the Guaranty and Assumption of Obligations attached hereto as Exhibit D and made a part hereof. By their signatures thereto, all such parties acknowledge and agree to be bound by the provisions of this Agreement in the same manner and to the same extent as FRANCHISEE.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the Guaranty and Assumption of Obligations that certain owners must execute is attached as Exhibit D to the franchise agreement. Specifically, the franchise agreement states that the term "FRANCHISEE" includes general partners and owners with 5% or more beneficial or legal interest in the franchisee or the franchised business.
Apricot Lane requires all such individual partners, shareholders, members, and owners to execute the Guaranty and Assumption of Obligations. By signing Exhibit D, these individuals acknowledge and agree to be bound by the provisions of the Franchise Agreement in the same manner and to the same extent as the franchisee.
This requirement ensures that individuals with a significant stake in the Apricot Lane franchise are personally liable for the franchise's obligations. This provides additional security to Country Visions, Inc., the franchisor, and aligns the interests of the owners with the success and compliance of the franchise.