After the Apricot Lane franchise is terminated or expires, for how long is the franchisee restricted from owning or being involved in a competing business?
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 Apricot Lane's 2025 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.
This restriction applies within the franchisee's former territory or within a 10-mile radius of any other Apricot Lane store. It is important to note that the enforcement of this non-compete agreement is subject to state law, which means the specific regulations and enforceability can vary depending on the state in which the franchise operates.
For a prospective Apricot Lane franchisee, this means that upon termination or expiration of the franchise agreement, they will not be able to operate a similar business in the immediate vicinity of their former location or other Apricot Lane stores for two years. This could limit their business opportunities and should be carefully considered before investing in the franchise. It would be prudent to consult with a legal professional to understand the specific implications and enforceability of the non-compete agreement in their state.