Is an Apricot Lane franchisee allowed to sell merchandise through other distribution channels without approval?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sell merchandise only from the premises of the Franchised Business unless we specifically and in writing authorize another location, such as a kiosk, or unless we specifically and in writing authorize another distribution channel. You may not solicit or accept orders outside of your Territory or engage in sales through any other channels of distribution inside or outside of your Territory, such as mail order, electronic commerce, catalogs or booths at craft fairs without our prior express written consent. However, as described in Item 1, qualifying franchisees may participate in our e-commerce platform programs. We and our affiliates can use alternative channels of distribution to solicit and accept orders within your Territory of products or services under the Marks or any other trademarks without paying you any compensation.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees are generally prohibited from selling merchandise through other distribution channels without prior written approval from COUNTRY VISIONS. Specifically, franchisees must sell merchandise only from the premises of the franchised business, unless the franchisor authorizes another location or distribution channel in writing. This restriction extends to soliciting or accepting orders outside the designated territory or engaging in sales through channels like mail order, electronic commerce, catalogs, or booths at craft fairs, all of which require prior express written consent. However, qualifying franchisees may participate in Apricot Lane's e-commerce platform programs as described in Item 1.
This policy ensures that Apricot Lane maintains control over its brand and distribution methods. It prevents franchisees from potentially undercutting each other or diluting the brand by selling through unauthorized channels. While it restricts the franchisee's autonomy, it also protects the integrity of the Apricot Lane brand and distribution network.
COUNTRY VISIONS and its affiliates retain the right to use alternative distribution channels to solicit and accept orders within the franchisee's territory without providing any compensation to the franchisee. This includes selling products or services under the Apricot Lane marks or other trademarks. This clause highlights a potential risk for franchisees, as the franchisor can directly compete within their territory through other channels, impacting their sales and revenue. Prospective franchisees should carefully consider this aspect and its potential impact on their business before investing in an Apricot Lane franchise.