What happens if there is no renewal option under the lease for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE maintains possession of the Premises by timely exercising any renewal option in the manner and by the date required under the lease, or if there is no renewal option under the lease, by entering into a new lease with the lessor for the Premises that shall include the lease clauses required under Section 4.C of this Agreement.
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, if there is no renewal option under the lease, the franchisee must enter into a new lease with the lessor that includes specific clauses outlined in Section 4.C of the Franchise Agreement. Alternatively, if securing a new lease isn't possible through reasonable efforts, Apricot Lane may require the franchisee to relocate to a substitute premises. Apricot Lane must notify the franchisee at least twelve months before the expiration of the term if they believe the business should be relocated. The franchisor has sole discretion over approving substitute premises.
The Apricot Lane franchisee bears the full responsibility for starting and maintaining efforts to either keep possession of the current premises or find a suitable substitute before the current term expires. The franchisee must keep Apricot Lane informed about all related matters throughout the process. This includes providing full disclosure of plans, copies of communications with landlords, and any other relevant information regarding the premises and lease.
To successfully renew the franchise, the Apricot Lane franchisee must present evidence that they have either exercised the renewal option under the lease or secured the right to remain in possession of the premises for the renewal term. If a renewal option isn't available or cannot be exercised at the time of notice, the franchisee must provide full disclosure to Apricot Lane regarding their plans to maintain possession or secure substitute premises. This includes providing copies of all communications with landlords and other relevant parties and keeping Apricot Lane updated on the status of the lease and premises.