Is an Apricot Lane franchisee required to abide by the standards and specifications established by the franchisor regarding merchandise and services?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISOR may establish and modify in its sole discretion standards and specifications regarding the merchandise that may be carried and the services that may be provided from the Franchised Business, including those required and recommended vendors and the type, brand, amount and variety of merchandise to be carried. FRANCHISEE shall abide by all such requirements, standards and specifications. FRANCHISOR has the right in its sole discretion to require FRANCHISEE to discontinue offering for sale any merchandise or services or the merchandise of any vendor not specifically approved by FRANCHISOR in its sole discretion. FRANCHISOR's standards and specifications, including lists of required and recommended merchandise or vendors, may be part of the Confidential Operations Manual or provided in any other format as FRANCHISOR determines, and may be modified from time to time by FRANCHISOR. FRANCHISEE shall carry an amount of merchandise reasonably adequate to meet the needs of its customers. FRANCHISOR may also issue standards and specifications for products, materials and supplies used in the Franchised Business, including recommended vendors, types and brands of products, materials and supplies. All products, materials and supplies used in the Franchised Business must meet these standards and specifications. FRANCHISOR may limit the number of recommended suppliers with whom FRANCHISEE may deal, designate sources that FRANCHISEE must use and/or refuse any of FRANCHISEE's requests to approve a supplier or merchandise for any reason, including that FRANCHISOR has already designated an exclusive source (which might be FRANCHISOR or its affiliate) for particular merchandise, goods or services or if FRANCHISOR believes that doing so is in the best interests of the Specialty Stores network.
E. General Quality Standards
In the absence of specifications or standards for a type of merchandise, product or materials, FRANCHISEE must ensure that the merchandise, products and materials sold or used in the Franchised Business are of a high quality and consistent with the image of the Specialty Stores that FRANCHISOR wants to convey. FRANCHISOR may in its sole discretion require FRANCHISEE to discontinue offering or using any merchandise, product or materials that in its opinion are inconsistent with the foregoing requirement.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, franchisees must adhere to the standards and specifications set by Apricot Lane concerning the merchandise and services offered at their franchised business. Apricot Lane has the authority to establish and modify these standards, which cover the types of merchandise carried, the services provided, and approved vendors. These standards may be communicated through the Confidential Operations Manual or other formats and can be updated periodically.
Apricot Lane retains the right to require franchisees to stop selling any merchandise or services, or using vendors not specifically approved by them. Franchisees are expected to maintain an adequate amount of merchandise to meet customer demand. Additionally, Apricot Lane may set standards for products, materials, and supplies used in the business, including specifying recommended vendors and brands. All products, materials, and supplies must meet these standards.
Apricot Lane can limit the number of suppliers a franchisee can work with, designate mandatory suppliers, and reject a franchisee's request to approve a supplier or merchandise for various reasons. This includes situations where Apricot Lane has already designated an exclusive source, potentially themselves or an affiliate, for specific merchandise, goods, or services, or if they believe it is in the best interest of the Apricot Lane network. In the absence of specific standards, franchisees must ensure that all merchandise, products, and materials are of high quality and consistent with the brand's image.