If an Apricot Lane Associate's employment with the Franchisee is terminated, does the post-termination covenant apply?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Post-Termination Covenant Not to Compete. Upon termination or expiration of the Franchise Agreement for any reason, or termination of Associate's employment with Franchisee, Associate agrees that, for a period of two (2) years commencing on the effective date of termination or expiration of the Franchise Agreement, or termination of Associate's employment with Franchisee, or the date on which Associate or the Franchisee, ceases to conduct business, whichever is later, the Associate will not have any direct or indirect interest (through any immediate family member of Associate or its owners or otherwise)
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the post-termination covenant applies to an Associate if their employment with the Franchisee is terminated. Specifically, the Associate agrees that for two years after the termination of their employment with the Franchisee, they will not have any direct or indirect interest in a competitive business.
The restriction applies for a period of two years, starting from the date of termination of the Associate's employment with the Franchisee, the termination or expiration of the Franchise Agreement, or the date the Associate or Franchisee ceases to conduct business, whichever is later. This non-compete agreement extends to any direct or indirect interest the Associate might have, including through immediate family members.
This clause is designed to protect Apricot Lane's confidential information, trade secrets, and established market position. By agreeing to this post-termination covenant, Associates acknowledge the value of the training, resources, and confidential information they receive during their association with the Apricot Lane franchise. Franchisees should ensure their employees understand these obligations to avoid potential legal issues.