Following termination of the Apricot Lane franchise agreement due to failure to complete training, which sections of the agreement remain binding on the franchisee?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
CHISEE or FRANCHISEE's employees in attending such additional training including, without limitation, travel costs, room and board expenses and employees' salaries.
C. Failure to Complete Training
FRANCHISEE or FRANCHISEE's designated manager must complete the initial training to FRANCHISOR's satisfaction as determined in FRANCHISOR's sole discretion. If this obligation is not fulfilled, FRANCHISOR may terminate this Agreement in the manner herein provided, and at FRANCHISOR's election, assume the lease for the Franchised Premises and/or purchase all furniture, fixtures and other assets of the Franchised Business at cost, as agreed upon by the parties. If this Agreement is terminated pursuant to this Paragraph, FRANCHISOR shall return to FRANCHISEE the franchise fees paid by FRANCHISEE to FRANCHISOR minus the expenses incurred by FRANCHISOR in connection with this Agreement and its performance hereunder not to exceed Five Thousand Dollars ($5,000);
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, if the franchise agreement is terminated due to failure to complete the initial training, the franchisee will still be bound by specific sections of the agreement. Specifically, Sections 9 and 18 of the agreement remain in effect after such termination.
This means that even after the franchise is terminated for failing to complete training, the franchisee must still adhere to the covenants and obligations outlined in Sections 9 and 18. These sections likely cover critical aspects such as non-compete clauses, confidentiality, and other post-termination responsibilities.
For a prospective Apricot Lane franchisee, this highlights the importance of understanding all post-termination obligations. Failure to comply with these surviving sections could result in legal action or financial penalties, even after the franchise agreement has been terminated. It is crucial to carefully review Sections 9 and 18 of the franchise agreement to fully understand these ongoing responsibilities.