What lease clauses are required under Section 4.C of the Apricot Lane franchise agreement?
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)
The 2025 Apricot Lane FDD states that franchisees must include specific lease clauses, as mandated by Section 4.C of the franchise agreement, when renewing their lease or securing a substitute premises. This requirement is crucial for maintaining the franchise's location and is tied to the renewal of the franchise agreement.
Specifically, if an Apricot Lane franchisee seeks to renew their franchise agreement, they must maintain possession of the premises. This can be achieved either by exercising any renewal option in their existing lease or, if no renewal option exists, by entering into a new lease with the lessor. This new lease MUST include the lease clauses required under Section 4.C of the Apricot Lane agreement.
If a renewal option isn't available, and the franchisee can't secure the right to maintain possession through a new lease, or if Apricot Lane determines the location should be changed, the franchisee must find a substitute premises. This new location must be approved by Apricot Lane and the lease for it must also include the clauses required under Section 4.C. The franchisee bears the responsibility for starting and continuing efforts to either keep the current premises or find a substitute before the lease expires, and they must keep Apricot Lane informed about these efforts.
In summary, maintaining an approved location with the lease clauses mandated by Section 4.C is a condition for franchise renewal. The franchisee is responsible for managing their lease and keeping Apricot Lane informed of their progress, and failure to do so can result in the denial of their franchise renewal.