What is the Apricot Lane franchisee's obligation regarding suppliers for the E-Commerce Platform?

According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee is restricted in their choice of suppliers for the E-Commerce Platform. Specifically, the franchisee may only use suppliers that Apricot Lane designates or approves for the initial and ongoing design, management, and maintenance services of the E-Commerce Platform. These suppliers may include Apricot Lane itself or its affiliates.

This requirement ensures that the E-Commerce Platform maintains a consistent standard and quality across all Apricot Lane franchises. By limiting the choice of suppliers, Apricot Lane can control the design, functionality, and maintenance of the platform, which directly impacts the customer experience and brand image. This also allows Apricot Lane to potentially negotiate better rates or terms with a smaller, select group of suppliers, which could benefit franchisees through cost savings or improved service.

However, this restriction also means that franchisees have limited autonomy in selecting suppliers, potentially missing out on opportunities to work with local or specialized providers who might offer better pricing or more tailored services. It is important for prospective franchisees to understand the implications of this requirement and to evaluate whether the approved suppliers meet their needs and expectations. Franchisees should also inquire about the process for requesting approval of alternative suppliers if they are not satisfied with the designated options.

Furthermore, Apricot Lane retains the right to change the E-Commerce Platform, including substituting providers and using different technology, to maintain the competitiveness of Specialty Stores. While Apricot Lane will give reasonable prior notice of such changes, the franchisee agrees to discontinue use of any E-Commerce Platform that Apricot Lane no longer authorizes and will only use the then-current authorized E-Commerce Platform, even if changes may result in costs and expenses to the franchisee.