What must an Apricot Lane franchisee sign if they renew or transfer their franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
tice to renew or FRANCHISOR's acceptance thereof will not impair FRANCHISOR's rights to terminate this Agreement as otherwise provided herein;
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- FRANCHISEE executes FRANCHISOR's then-current form of Franchise Agreement (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), which agreement shall become effective on commencement of the renewal term and supersede in all respects this Agreement, and the terms of which may differ from the terms of this Agreement, including, without limitation, a different percentage Royalty, advertising contribution or other fees; provided, however, FRANCHISEE shall not be required to pay the thencurrent initial franchise fee or its equivalent. The form of Franchise Agreement that will be used for the renewal term will be given to FRANCHISEE at least ninety (90) days before the renewal term is to begin. If FRANCHISOR is not offering new franchises at the time of renewal request, FRANCHISOR reserves the right to choose the form of franchise agreement that will be required for the renewal period. FRANCHISEE agrees to sign the Franchise Agreement offered by FRANCHISOR at least sixty (60) days before the current franchise term expires. If the Agreement is not signed by that deadline, the franchise will automatically expire at the end of the term;
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- FRANCHISEE has complied with FRANCHISOR's then-current qualification and training requirements before the expiration of the term.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, a franchisee must sign the then-current form of the Franchise Agreement to renew their franchise. This agreement will include modifications to reflect that it is a renewal and will supersede the original agreement. The terms of the renewed agreement may differ from the original, potentially including different royalty percentages, advertising contributions, or other fees. However, the franchisee will not be required to pay the then-current initial franchise fee or its equivalent. The franchisee must sign this renewal agreement at least 60 days before the current franchise term expires, or the franchise will automatically expire.
For a transfer of the franchise, the transferee must either assume the existing agreement in writing or execute Apricot Lane's then-current standard franchise agreement, at the franchisor's election. This ensures that the new franchisee is bound by the current terms and conditions deemed necessary by Apricot Lane.
These requirements ensure that Apricot Lane can update its franchise agreements to reflect current business practices and legal requirements, and that both renewing and new franchisees are operating under the same standards. This is a fairly standard practice in franchising, as franchise systems evolve over time and need to ensure consistency and compliance across all locations.