Is the Apricot Lane franchisor obligated to grant any extension of time for securing a site?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- A suitable site must be secured by FRANCHISEE and approved by FRANCHISOR within _______ calendar months from date the Franchise Agreement is executed. By mutual agreement, extensions to this calendar period may be granted in three (3) calendar month increments by the issuance of a written letter from FRANCHISOR to FRANCHISEE and accepted in writing by FRANCHISEE.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, Apricot Lane is not obligated to grant an extension of time for a franchisee to secure a suitable site. The FDD states that a suitable site must be secured and approved within a specified timeframe from the date the Franchise Agreement is executed. Extensions to this period may be granted in three-month increments, but Apricot Lane has the sole discretion to decline such extensions.
If a suitable site is not secured within the initial timeframe or any granted extensions, Apricot Lane has the right to terminate the Franchise Agreement. In such a case, Apricot Lane is entitled to retain the $5,000 installment on the initial franchise fee paid by the franchisee.
This policy means that prospective Apricot Lane franchisees face a risk of losing their initial franchise fee installment if they cannot find and secure an approved location within the given timeframe. Franchisees should carefully consider the availability of suitable locations in their desired area and the potential for delays in site approval before entering into a Franchise Agreement with Apricot Lane.