What must an Apricot Lane franchisee do if they have no renewal option under the lease?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE maintains possession of the Premises by timely exercising any renewal option in the manner and by the date required under the lease, or if there is no renewal option under the lease, by entering into a new lease with the lessor for the Premises that shall include the lease clauses required under Section 4.C of this Agreement.
If there is no renewal option and FRANCHISEE cannot through reasonable efforts secure the right to maintain possession of the Premises under a new lease, or if FRANCHISOR notifies FRANCHISEE no later than twelve (12) months before expiration of the term that in its judgment the Franchised Business should be relocated, FRANCHISEE must secure substitute premises approved by FRANCHISOR, in its sole discretion, under a lease that includes the lease clauses required under Section 4.C of this Agreement.
It is fully understood by FRANCHISEE that FRANCHISEE is solely responsible for timely commencing and sustaining efforts needed to either maintain possession of the Premises or to secure substitute premises before expiration of the term and that FRANCHISEE must keep FRANCHISOR fully and timely informed of all such matters;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, if an Apricot Lane franchisee has no renewal option under their lease, they must take specific actions to maintain their franchise. The franchisee must enter into a new lease with the lessor for the premises, ensuring that the new lease includes clauses required under Section 4.C of the Franchise Agreement. This ensures the franchisee maintains possession of the premises.
If securing a new lease proves unfeasible despite reasonable efforts, or if Apricot Lane notifies the franchisee at least twelve months before the lease expires that relocation is necessary, the franchisee is obligated to find a substitute premises. This new location must be approved by Apricot Lane and the lease for the substitute premises must also include the clauses required under Section 4.C of the agreement.
The Apricot Lane franchisee bears the full responsibility for starting and continuing the efforts to either maintain possession of the current premises or secure a substitute location before the current term expires. Throughout this process, the franchisee must keep Apricot Lane fully informed about all developments related to the lease and premises. This proactive communication ensures that Apricot Lane is aware of the franchisee's efforts and can provide guidance or assistance if needed. Meeting these conditions is essential for the franchisee to be eligible for renewal of their franchise agreement.