Does the Apricot Lane franchisor have sole discretion in approving substitute premises for renewal?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisor does have sole discretion in approving substitute premises for renewal under certain conditions. If there is no renewal option in the lease and the franchisee cannot secure the right to maintain possession of the premises through reasonable efforts, or if Apricot Lane notifies the franchisee that relocation is necessary, the franchisee must secure substitute premises approved by Apricot Lane in its sole discretion. This approval must be under a lease that includes specific clauses outlined in Section 4.C of the agreement.
This means that if a franchisee's lease is expiring and they either don't have an option to renew or Apricot Lane believes the location is no longer suitable, the franchisee cannot simply choose a new location. They must find a substitute premises that meets Apricot Lane's approval, giving the franchisor significant control over the location of the business. This is a critical point for prospective franchisees to consider, as it limits their autonomy in choosing a location if relocation becomes necessary.
The franchisee is responsible for keeping Apricot Lane informed of their efforts to either maintain possession of the current premises or secure a substitute location. Failing to secure approved substitute premises can be grounds for denying renewal of the franchise. This highlights the importance of proactive communication and diligent effort on the part of the franchisee to manage their lease and location in accordance with Apricot Lane's requirements.
This level of franchisor control over location is not uncommon in franchise systems, particularly in retail, where brand image and location are critical to success. However, it places a significant responsibility on the franchisee to maintain a good relationship with the franchisor and to understand the terms of their lease agreement to ensure compliance with renewal requirements.