If the Apricot Lane franchisee is not an individual, what is the requirement for designating an individual responsible for full-time effort?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
e merchandise, with or without bearing the any of the Marks or related names or marks, FRANCHISEE will carry a representative selection of such merchandise. FRANCHISEE agrees to use or provide those items only from the Premises, at retail, and only in the manner FRANCHISOR may specify.
J. Management and Supervision
The Franchised Business shall at all times be under the management and supervision of the FRANCHISEE, unless otherwise approved by Franchisor in writing. FRANCHISEE shall devote full-time and best efforts to the operation and management of the Franchised Business. If
FRANCHISEE is not an individual, then an owner in the Franchised Business or a general partner in the Franchised Business shall be designated as the individual responsible for exerting such fulltime and best efforts. FRANCHISEE may delegate the day-to-day, on-premises management to a full-time manager who has successfully completed FRANCHISOR'S initial training program (or other training as specifically designated by FRANCHISOR). FRANCHISEE shall keep FRANCHISOR informed at all times of the identity of any employee(s) acting as manager(s) of the Franchised Business. All managers of the Franchised Business employed by FRANCHISEE shall complete the initial training program specified in Section 6.B (unless otherwise agreed upon in writing by FRANCHISOR) at such costs as specified therein. FRANCHISEE shall cause each such manager to sign a Confidentiality and Non-Disclosure Agreement in a form approved by FRANCHISOR and FRANCHISEE shall submit a copy of such agreement to FRANCHISOR within thirty (30) days after execution by the applicable manager. Notwithstanding the delegation of day-to-day operations, FRANCHISEE shall remain ultimately responsible for the operation of the Franchised Business and for supervising all managers.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, if the franchisee is not an individual, an owner or general partner must be designated to exert full-time effort in managing the franchised business. This designated individual takes on the responsibility of ensuring the business receives the necessary attention and dedication for successful operation.
This requirement ensures that even when the franchise is owned by a corporation or partnership, there is a specific person accountable for its active management. This is a common practice in franchising, as it helps maintain brand standards and operational consistency. The designated individual is expected to devote their full-time efforts to the business, which means they cannot be passively involved or have conflicting business interests that would detract from their commitment to the Apricot Lane franchise.
Apricot Lane also allows the franchisee to delegate day-to-day management to a full-time manager who has completed the initial training program. However, even with a manager in place, the franchisee (or the designated owner/partner) remains ultimately responsible for the overall operation and supervision of the business. This ensures that the franchisee maintains control and oversight, even if they are not directly involved in the daily tasks.
Prospective franchisees should carefully consider this requirement, especially if they plan to operate the franchise through a business entity. They need to identify an owner or general partner who is willing and able to commit full-time to the Apricot Lane business. This individual should also be prepared to undergo the necessary training and maintain ongoing involvement in the franchise's operations.