Following termination or expiration of an Apricot Lane franchise, what is the geographic scope of the non-compete covenant?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.B in Franchise Agreement | For 2 years after expiration or termination for any reason, you may not own or be involved in competing business within your former Territory or within 10 miles of any other Store. (Subject to state law.) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is subject to a non-compete covenant. This covenant restricts the franchisee from owning or being involved in a competing business for a period of 2 years.
The geographic scope of this restriction includes the franchisee's former territory. In addition to the former territory, the non-compete extends to within 10 miles of any other Apricot Lane store.
It is important to note that the enforceability of non-competition covenants can vary by state law. Prospective Apricot Lane franchisees should consult with legal counsel to understand the specific implications and enforceability of the non-compete agreement in their state.