What geographic area is covered by the non-competition covenant after termination or expiration of an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.B in Franchise Agreement | For 2 years after expiration or termination for any reason, you may not own or be involved in competing business within your former Territory or within 10 miles of any other Store. (Subject to state law.) |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–41)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Section 17.B of the Franchise Agreement outlines the non-competition covenant that applies after the franchise is terminated or expires. This covenant restricts a franchisee from owning or being involved in a competing business for two years after the termination or expiration of the franchise agreement.
The geographic scope of this restriction includes the franchisee's former territory. Additionally, the non-compete extends to an area within 10 miles of any other Apricot Lane store. It is important to note that the enforcement of these non-competition covenants is subject to state law, which means the specific terms and enforceability can vary depending on the state in which the franchise operates.
For a prospective Apricot Lane franchisee, this means that upon termination or expiration of their franchise, they will be limited in their ability to engage in similar business ventures within their previous territory and near other Apricot Lane locations for a period of two years. This restriction could impact their future business opportunities and should be carefully considered before entering into a franchise agreement. It would be prudent to seek legal counsel to understand the specific enforceability and implications of the non-compete clause in their state.