How long does an Apricot Lane franchisee have to secure a suitable site after the Franchise Agreement is executed?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
or will be available for development of a Specialty Store or that FRANCHISEE will be permitted by the lessor or FRANCHISOR to open the Franchised Business in such center(s) and/or geographic area. FRANCHISOR is not required to give preference to any particular franchisee over another, if both have open licenses and both have indicated preferences for the same center(s) or geographic area and may elect in its sole discretion which franchisee to finally approve for a particular center or area.
-
- A suitable site must be secured by FRANCHISEE and approved by FRANCHISOR within _______ calendar months from date the Franchise Agreement is executed. By mutual agreement, extensions to this calendar period may be granted in three (3) calendar month increments by the issuance of a written letter from FRANCHISOR to FRANCHISEE and accepted in writing by FRANCHISEE.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee must secure a suitable site approved by the franchisor within a specific timeframe from the date the Franchise Agreement is executed. The exact number of months is not specified in the document, as indicated by the blank space in the agreement. However, the agreement allows for extensions to this period in three-month increments, granted via a written letter from Apricot Lane and accepted by the franchisee. Apricot Lane is not obligated to grant any extensions and may decline at their discretion.
If a suitable site is not secured and approved within the initial timeframe or any granted extensions, Apricot Lane has the right to terminate the Franchise Agreement. In such a case, Apricot Lane is entitled to retain the $5,000 installment on the initial franchise fee that the franchisee paid.
Prospective franchisees should note the importance of securing a site within the stipulated timeframe to avoid potential termination of the agreement and loss of the initial $5,000 installment. It is crucial to discuss the typical timeframe and the possibility of extensions with Apricot Lane during the due diligence process to fully understand the obligations and risks involved.