For how long after the termination or expiration of the Apricot Lane franchise agreement is the franchisee restricted from engaging in a similar business?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Post-Term Covenants
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- FRANCHISEE specifically acknowledges that, pursuant to this Agreement, FRANCHISEE will receive valuable training, resources, contacts and Confidential Information, including, without limitation, information regarding the promotional, operational, sales and marketing methods and techniques of FRANCHISOR and the System. For a period of two (2) years after expiration of or after termination of this Agreement for any reason, FRANCHISEE shall not either directly or indirectly, for itself/himself/herself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, engage in, provide management, resources, contacts, vendors or consulting services to, act as a lender for, provide assets to, or have any interest in any business that offers or sells, in any channel of distribution, an assortment of merchandise that is similar to the assortment of merchandise then being carried in the Specialty Stores unless granted prior approval in writing by FRANCHISOR:
- a. Within the Territory;
- b. Within a radius of ten (10) miles of the location of any other Specialty Store, whether franchised or owned by FRANCHISOR; or
- c. Though e-commence where such sales are substantially supported within the Territory (including, but not limited to, support provided by offices, administrative centers, communication centers, warehouses, distribution centers and/or servers located within the Territory).
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, a franchisee is restricted from engaging in a similar business for a period of two years after the termination or expiration of the franchise agreement. This restriction applies regardless of the reason for termination or expiration.
Specifically, the franchisee cannot own, maintain, engage in, provide management, resources, contacts, vendors, or consulting services to, act as a lender for, provide assets to, or have any interest in any business that offers or sells a similar assortment of merchandise to Apricot Lane stores. This restriction applies within the franchisee's territory, within a 10-mile radius of any other Apricot Lane store (whether franchised or company-owned), or through e-commerce where sales are substantially supported within the territory.
This post-term covenant acknowledges that franchisees receive valuable training, resources, contacts, and confidential information about Apricot Lane's operational and marketing methods. The FDD states that these covenants are considered necessary to protect the Apricot Lane system. If any part of the covenant is deemed unreasonable or unenforceable by a court, the franchisee is still bound by a lesser covenant that imposes the maximum duty permitted by law.
This type of non-compete clause is common in franchising to protect the brand and prevent franchisees from using the franchisor's proprietary information to start a competing business shortly after leaving the system. Prospective Apricot Lane franchisees should carefully consider the implications of this restriction before entering into a franchise agreement.