What must an Apricot Lane franchisee comply with regarding the Option Franchise Agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
greement"), provided it is executed by FRANCHISEE before expiration of the Option. The balance of the initial franchise fee for the Option Location shall be paid upon execution of the Option Franchise Agreement.
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- If FRANCHISEE does not exercise this Option within twelve (12) calendar months after the date of this Agreement, the option shall automatically expire. The Option Fee shall be retained by FRANCHISOR and deemed fully earned by FRANCHISOR for holding the Option Location off the market.
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- FRANCHISEE understands that in order to exercise the Option for the Option Location and to be offered another franchise under the Option Franchise Agreement, FRANCHISEE must be in full compliance with the terms of the Franchise Agreement, have no history of defaults under the Franchise Agreement, the Premises lease or any other agreement which may be ancillary to the Franchised Business and the Franchise Agreement. In addition, FRANCHISEE must provide proof, in the form of a pre-approved financing package, of FRANCHISEE's financial ability to develop the Option Location. Such proof must be provided prior to the execution of the Option Franchise Agreement.
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- FRANCHISOR reserves the right to terminate the Option if at any time FRANCHISEE is found in default of the Franchise Agreement or the Premises lease. This Option
will automatically terminate in the event that their Franchise Agreement is terminated for any reason.
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- Neither this Location Option Agreement nor the Option are assignable by the FRANCHISEE under any circumstances.
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- The granting of this Option by FRANCHISOR is not a guaranty or assurance that the Option Location will be available to FRANCHISEE to develop as a Specialty Store within the term of this Option or at any time thereafter.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, a franchisee must be in full compliance with the terms of the Franchise Agreement to exercise the Option for the Option Location and to be offered another franchise under the Option Franchise Agreement. This includes having no history of defaults under the Franchise Agreement, the Premises lease, or any other agreement ancillary to the Franchised Business and the Franchise Agreement.
Furthermore, the Apricot Lane franchisee must provide proof of their financial ability to develop the Option Location in the form of a pre-approved financing package before the execution of the Option Franchise Agreement. The franchisor also reserves the right to terminate the Option if the franchisee is found in default of the Franchise Agreement or the Premises lease. The Option will automatically terminate if the Franchise Agreement is terminated for any reason.
In addition, the Apricot Lane franchisee will need to comply with all terms and conditions of the Option Franchise Agreement relative to securing the site, leasing of the site, and construction of the site and obtain all approvals of Franchisor required in the Option Franchise Agreement with respect to these matters. The granting of this Option by Apricot Lane is not a guaranty or assurance that the Option Location will be available to FRANCHISEE to develop as a Specialty Store within the term of this Option or at any time thereafter. FRANCHISOR has not secured the Option Location for development as a Specialty Store and FRANCHISEE shall have the sole and exclusive responsibility for doing so.