What is the Apricot Lane franchisee's obligation regarding lease renewal options?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
ewal to FRANCHISOR at least nine (9) months, but no sooner than twelve (12) months prior to expiration of initial term of this Agreement;
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- 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;
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- FRANCHISEE, at the time of giving its notice of renewal of the franchise, also presents evidence satisfactory to FRANCHISOR that FRANCHISEE has exercised the renewal option under the lease for the Premises or has otherwise secured the right to remain in possession of the Premises for the duration of any renewal term; or if at the time for giving such notice, FRANCHISEE has no renewal option or cannot yet exercise it under the terms of the lease or has otherwise not secured the right to remain in possession of the Premises during the renewal term, FRANCHISEE provides full disclosure to FRANCHISOR concerning FRANCHISEE's plans regarding maintaining possession of the Premises or securing substitute Premises and provides copies to FRANCHISOR of all communications and notices given to or received from landlords in relation to the above, as well as any and all communications with any other parties regarding the Premises and/or the lease, and continues to keep the FRANCHISOR timely apprised of the status of the lease and/or Premises.
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- Before expiration of the term, FRANCHISEE has secured the right to remain in possession of the Premises during the renewal term or has secured substitute Premises as provided above for the renewal term and has brought the Franchised Business and the Premises into full compliance with the specifications and standards then applicable for new or renewing Specialty Stores and has furnished, stocked and equipped the existing or substitute Premises so as to bring the Franchised Business into full compliance with the then-current specifications and standards within ninety (90) days from the expiration date of this Agreement;
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- FRANCHISEE pays all amounts owed to FRANCHISOR and its affiliates prior to expiration of the term;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees must maintain possession of their premises by either 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 that includes specific clauses required by Apricot Lane.
If there is no renewal option and the franchisee cannot secure the right to maintain possession through reasonable efforts, or if Apricot Lane decides the business should be relocated, the franchisee must secure substitute premises approved by Apricot Lane, under a lease that includes the clauses Apricot Lane requires. The franchisee is solely responsible for starting and continuing efforts to either maintain possession of the current premises or secure a substitute location before the term expires, and they must keep Apricot Lane informed of all related matters.
To renew their franchise agreement, Apricot Lane franchisees must present evidence that they have exercised the renewal option under the lease or have secured the right to remain in possession of the premises for the duration of any renewal term. If the franchisee has no renewal option or cannot yet exercise it, they must provide full disclosure to Apricot Lane concerning their plans for maintaining possession or securing substitute premises. This includes providing copies of all communications and notices to and from landlords, as well as any communications with other parties regarding the premises and/or the lease, and must continue to keep Apricot Lane informed of the lease status.
Before the franchise term expires, the franchisee must secure the right to remain in possession of the premises during the renewal term or secure substitute premises. They must also bring the franchised business and the premises into full compliance with the specifications and standards applicable for new or renewing stores. This includes furnishing, stocking, and equipping the existing or substitute premises to meet current standards within 90 days from the expiration date of the agreement. Failure to comply with these obligations regarding the lease and premises can be grounds for denying renewal of the franchise.