Can an Apricot Lane franchisee be in default under any agreement to be eligible for renewal?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE is not in default under this Agreement or any other agreement between FRANCHISOR and FRANCHISEE or between any affiliate, if any, of FRANCHISOR, at the time FRANCHISEE gives that notice and also at the time the renewal is to take effect, it being understood that the giving of a notice to renew or FRANCHISOR's acceptance thereof will not impair FRANCHISOR's rights to terminate this Agreement as otherwise provided herein;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, an Apricot Lane franchisee must not be in default to be eligible for renewal. Specifically, the franchisee must not be in default under the current Franchise Agreement or any other agreement with Apricot Lane or its affiliates at the time they provide notice of renewal and when the renewal takes effect.
This requirement ensures that franchisees seeking renewal are in good standing with Apricot Lane. Defaulting on any agreement could be grounds for Apricot Lane to deny the renewal, regardless of whether a renewal notice was given or accepted. This protects Apricot Lane from franchisees who have not met their contractual obligations.
In addition to not being in default, the Apricot Lane franchisee must also pay all amounts owed to Apricot Lane and its affiliates before the expiration of the current term. They must also comply with all provisions of the franchise agreement and any other agreements with Apricot Lane and its affiliates during the entire term and any subsequent renewals. These conditions collectively ensure that only franchisees who have consistently met their financial and operational obligations are eligible for renewal.