What are the Apricot Lane franchisee's required actions regarding site selection and approval, as detailed in the franchise agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
conditions have not been or will not be satisfied. Such notice shall specify the reasons for nonrenewal.
SECTION 4: LEASE FOR THE PREMISES
A. Site Selection and Approval
FRANCHISEE will be responsible for purchasing or leasing suitable Premises. If a specific location is designated in Section 1.B above, FRANCHISEE is solely responsible for securing suitable Premises at said location for the Franchised Business, which must be approved by FRANCHISOR. If FRANCHISEE has an Open License under the terms of Exhibit A, FRANCHISEE must select and secure a suitable location and Premises at such location for the Franchised Business, which must be approved by FRANCHISOR, in accordance with the terms of Exhibit A. Prior to the acquisition by lease or purchase of the Premises, FRANCHISEE shall submit a written description of the proposed site to FRANCHISOR, together with a letter of intent describing in detail the business terms and conditions and other evidence satisfactory to FRANCHISOR which confirms FRANCHISEE's favorable prospects for obtaining the proposed site. FRANCHISOR shall provide FRANCHISEE written notice of approval or disapproval of the proposed location and premises within thirty (30) business days after receiving FRANCHISEE's written proposal.
Despite any assistance, information or recommendations that FRANCHISOR provided or will provide (whether before or after the Effective Date) with respect to the Premises, FRANCHISOR has made and will make no representations or warranties of any kind, express or implied, of the suitability of the Premises for a Specialty Store or any other purpose. FRANCHISOR's recommendation indicates only that FRANCHISOR believes that the Premises meets or has the potential to meet, or that FRANCHISOR has waived, the general criteria of Premises acceptability that FRANCHISOR has established as of that time. Applying criteria that have appeared effective for other Premises might not accurately reflect the potential for all premises, and, after we recommend or accept a Premises, demographic and/or other factors included in or excluded from our location criteria could change, thereby altering a premises' potential. The uncertainty and instability of these criteria are beyond FRANCHISOR's control, and FRANCHISOR is not responsible if the Premises fails to meet FRANCHISOR's or FRANCHISEE's expectations. Your acceptance of the rights under this Agreement is based on your own independent investigation of, or agreement in the future to investigate, the Premises' suitability. Initial_______
B. Leasing Assistance
FRANCHISOR may recommend a national real estate broker or leasing specialist experienced with representing national retail tenants and a leasing specialist to FRANCHISEE to assist with lease negotiation and lease comment services. Use of FRANCHISOR's recommended leasing specialist is optional. The leasing specialist may be an independent contractor or an employee of FRANCHISOR. If FRANCHISEE uses the recommended lease specialist FRANCHISEE will pay for these services at the then-current rates provided by FRANCHISOR or if the specialist is an independent contractor, at such fees agreed by the independent contractor and
FRANCHISEE. FRANCHISEE shall provide to FRANCHISOR a copy of all communications between FRANCHISEE, the landlord (and/or its representatives), and the leasing specialist.
FRANCHISOR does not, and will not, assume any liability or be deemed liable for any agreements, representations, or warranties made and entered into between FRANCHISEE, any landlord and/or any lease specialist, nor will FRANCHISOR be obligated for any damages to FRANCHISEE directly or indirectly arising out of the actions of any landlord, leasing specialist or anyone directly involved in lease negotiations. Initial_______
C. FRANCHISOR Required Lease Clauses
FRANCHISEE shall submit the proposed lease for the approved location (if the Premises are to be leased) or a binding agreement to purchase the site, for approval by FRANCHISOR prior to execution of the lease by FRANCHISEE. FRANCHISOR's approval of the lease may be conditioned upon inclusion in the lease of terms acceptable to FRANCHISOR and, at FRANCHISOR's option, the Lessor of the Premises and FRANCHISEE duly executing and delivering to FRANCHISOR the Addendum to Lease attached hereto as Exhibit E.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees are responsible for site selection and securing premises for their boutique. If a location is pre-designated in the Franchise Agreement, the franchisee is responsible for securing suitable premises at that specific location, subject to Apricot Lane's approval. If the franchisee has an open license, they must select and secure a suitable location, which also requires Apricot Lane's approval, as detailed in Exhibit A.
Prior to leasing or purchasing a site, the franchisee must submit a written description of the proposed site to Apricot Lane, along with a letter of intent outlining the business terms and conditions. They must also provide other evidence that satisfies Apricot Lane regarding the franchisee's prospects for obtaining the site. Apricot Lane will then provide written notice of approval or disapproval within 30 business days of receiving the franchisee's proposal.
The franchisee is responsible for negotiating the lease terms, and Apricot Lane has no obligation to assist in these negotiations. Apricot Lane recommends that franchisees hire an attorney or experienced leasing specialist to review the lease terms. Apricot Lane's assistance in finding a location, site approval, lease approval, or negotiation help does not warrant the site or lease terms are adequate for the franchisee's needs. The franchisor's reviews, approvals, and assistance are based on its own criteria and are not a guaranty that franchisee will succeed in the site selected or under the terms of the lease approved by Franchisor.
If a suitable site is not secured and approved within a specified timeframe, which is left blank in the agreement excerpt, or any granted extensions, Apricot Lane has the right to terminate the Franchise Agreement and retain the $5,000 installment on the initial franchise fee paid by the franchisee. The designation of preferred centers or areas is not a guarantee that any particular center is or will be available for development of a Specialty Store or that FRANCHISEE will be permitted by the lessor or FRANCHISOR to open the Franchised Business in such center(s) and/or geographic area. FRANCHISOR is not required to give preference to any particular franchisee over another, if both have open licenses and both have indicated preferences for the same center(s) or geographic area and may elect in its sole discretion which franchisee to finally approve for a particular center or area.