Does the Apricot Lane FDD include an exhibit for a 'Collateral Assignment of Lease'?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall submit the proposed lease for the approved location (if the Premises are to be leased) or a binding agreement to purchase the site, for approval by FRANCHISOR prior to execution of the lease by FRANCHISEE. FRANCHISOR's approval of the lease may be conditioned upon inclusion in the lease of terms acceptable to FRANCHISOR and, at FRANCHISOR's option, the Lessor of the Premises and FRANCHISEE duly executing and delivering to FRANCHISOR the Addendum to Lease attached hereto as Exhibit E. At FRANCHISOR's option, FRANCHISEE will duly execute and deliver to FRANCHISOR the Collateral Assignment of Lease attached hereto as Exhibit G.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
Yes, according to the 2025 Apricot Lane Franchise Disclosure Document, Exhibit G to the franchise agreement is a Collateral Assignment of Lease. Item 23 mentions that at Apricot Lane's option, the franchisee will duly execute and deliver to Apricot Lane the Collateral Assignment of Lease attached as Exhibit G.
Furthermore, the table of exhibits lists "Collateral Assignment of Lease" as Exhibit G. This exhibit is a standard legal document used in franchising to protect the franchisor's interest in the lease of the franchisee's business location.
In the event of certain defaults or termination of the franchise agreement, the collateral assignment allows Apricot Lane to take over the lease, ensuring continuity of the business at that location or allowing them to transfer the lease to another franchisee. This is a common practice in franchising to safeguard the brand's presence and operational stability.