Does the Apricot Lane franchise agreement define 'Associate' to include the Associate's principals?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Associate and the Franchisor, intending legally to be bound, agree as follows:
1. Definitions.
- (a) "Associate" shall mean the individual or entity described in the first paragraph of this Agreement and the Associate's managers, officers, beneficial owners, directors, employees, shareholders, partners, members, principals, immediate family members and domestic partners.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the term "Associate" is comprehensively defined within the agreement. The definition includes not only the individual or entity directly described in the agreement's first paragraph but also extends to encompass a range of related parties.
Specifically, the definition of "Associate" includes the Associate's managers, officers, beneficial owners, directors, employees, shareholders, partners, members, principals, immediate family members, and domestic partners. This broad definition is important because it extends the obligations and restrictions outlined in the agreement (such as those related to confidentiality and non-competition) to all of these related parties.
For a prospective Apricot Lane franchisee, this means that not only are they bound by the terms of the agreement, but so are their managers, officers, owners, and even family members. This is a fairly standard practice in franchising, designed to protect the franchisor's interests and ensure that confidential information and trade secrets are not compromised by anyone closely associated with the franchisee. Franchisees should carefully consider the implications of this broad definition and ensure that all relevant parties are aware of and understand their obligations under the agreement.