What is the geographic scope of the non-competition covenant for an Apricot Lane franchise after termination or expiration?
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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is subject to a non-competition covenant. This means that for a period of 2 years after the termination or expiration of the franchise agreement, the franchisee cannot own or be involved in a competing business.
The geographic scope of this restriction includes the franchisee's former territory. In addition to the former territory, the restriction extends to within 10 miles of any other Apricot Lane store.
It is important to note that the enforceability of non-competition covenants can vary by state law. The FDD indicates that the non-competition covenant is 'Subject to state law,' meaning a state may have laws that invalidate or modify such agreements. Prospective franchisees should consult with a legal professional to understand the specific enforceability of these covenants in their state.