Is an Apricot Lane franchisee prohibited from engaging in e-commerce sales of similar merchandise after termination if the sales are substantially supported within the territory?

According to the 2025 Apricot Lane FDD, a franchisee's ability to engage in e-commerce sales of similar merchandise after the termination of the franchise agreement is subject to certain restrictions. Specifically, upon termination or expiration of the agreement, the franchisee must immediately cease using the E-Commerce Platform, which includes halting the marketing and sale of any merchandise. This extends to the use of any and all Marks and Content associated with the platform. This clause indicates a clear restriction on continuing e-commerce activities using the Apricot Lane brand or platform post-termination.

However, the FDD excerpts provided do not explicitly address whether a franchisee is prohibited from engaging in e-commerce sales of similar merchandise through a different platform or brand after termination, particularly if those sales are substantially supported within the former territory. The documents focus primarily on the cessation of using Apricot Lane's E-Commerce Platform and associated intellectual property. The agreement does outline post-term covenants, but the provided excerpt cuts off before detailing the specifics of those covenants.

Therefore, while an Apricot Lane franchisee is certainly restricted from using the franchisor's e-commerce platform and branding for online sales after termination, the FDD excerpts do not provide a definitive answer on whether they can sell similar merchandise independently, especially if supported within their former territory. A prospective franchisee should seek clarification from Apricot Lane regarding the specific scope and limitations of post-term covenants related to online sales and competitive activities.