For how long after the termination or expiration of the Apricot Lane Franchise Agreement are franchisees restricted from engaging in similar businesses?
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 FDD, franchisees are subject to a post-term covenant not to compete for a period of two years after the expiration or termination of the Franchise Agreement. This restriction applies regardless of the reason for termination. During this two-year period, franchisees are prohibited from engaging in any business that offers or sells a similar assortment of merchandise to that carried in Apricot Lane Specialty Stores. This includes owning, maintaining, or providing services to such businesses.
The non-compete clause extends to specific geographic areas. Franchisees are restricted from operating a similar business within their former territory, within a 10-mile radius of any other Apricot Lane Specialty Store (whether franchised or company-owned), or through e-commerce if the sales are substantially supported within the former territory. Substantial support includes having offices, administrative centers, communication centers, warehouses, distribution centers, or servers located within the territory.
The Apricot Lane FDD specifies that the franchisee acknowledges receiving valuable training, resources, contacts, and confidential information, including promotional, operational, sales, and marketing methods. The franchisor deems these restrictions reasonably necessary to protect and preserve the Apricot Lane system. If any part of the covenant is deemed unenforceable, the franchisee is still bound by a lesser covenant that imposes the maximum duty permitted by law.