What is the franchisee prohibited from engaging in that would conflict with their obligations under the Apricot Lane Franchise Agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Associate therefore agrees that other than the Franchise Business licensed under a Franchise Agreement, the Associate, will not during the Term and renewal Term of the Franchise Agreement:
(a) Have any direct or indirect controlling interest as a disclosed or beneficial owner in a Competitive Business; or
(b) Perform services as a director, partner, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business; or
(c) Divert or attempt to divert any business related to, or any customer or account of the Franchised Business, the Franchisor's business, the business of any affiliate of the Franchisor or any other franchisee's business, by direct inducement or otherwise, or divert or attempt to divert the employment of any employee of Franchisor or another franchisee licensed by Franchisor, to any Competitive Business by any direct inducement or otherwise; or
(d) Without the Franchisor's express written permission, which may be granted or denied in the Franchisor's sole discretion, become an exclusive distributor for any third-party vendor or obtain exclusive distribution rights for any non-APRICOT LANE Products.
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- Post-Termination Covenant Not to Compete. Upon termination or expiration of the Franchise Agreement for any reason, or termination of Associate's employment with Franchisee, Associate agrees that, for a period of two (2) years commencing on the effective date of termination or expiration of the Franchise Agreement, or termination of Associate's employment with Franchisee, or the date on which Associate or the Franchisee, ceases to conduct business, whichever is later, the Associate will not have any direct or indirect interest (through any immediate family member of Associate or its owners or otherwise)
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 34–35)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, an associate, which includes officers, directors, managers, employees, and family members of the franchisee, is restricted from certain activities that could conflict with the Apricot Lane Franchise Agreement. These restrictions are in place during the term and any renewal term of the Franchise Agreement.
Specifically, the associate cannot have any direct or indirect controlling interest in a Competitive Business, nor can they perform services for a Competitive Business as a director, partner, officer, manager, employee, consultant, representative, or agent. They are also prohibited from diverting or attempting to divert business or customers from the Apricot Lane franchised business, the franchisor's business, its affiliates, or any other franchisee's business. This includes attempting to divert employees to any Competitive Business.
Furthermore, without express written permission from Apricot Lane, an associate cannot become an exclusive distributor for any third-party vendor or obtain exclusive distribution rights for any non-Apricot Lane products. These restrictions ensure that associates remain committed to the success of the Apricot Lane franchise and do not engage in activities that could harm the brand or its franchisees. After the termination or expiration of the franchise agreement, the associate is subject to a two-year covenant not to compete.