For how long after termination or expiration of the Apricot Lane franchise is the non-competition covenant in effect?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.B in Franchise Agreement | For 2 years after expiration or termination for any reason, you may not own or be involved in competing business within your former Territory or within 10 miles of any other Store. (Subject to state law.) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, the non-competition covenant lasts for a period of 2 years after the expiration or termination of the franchise agreement. This restriction applies regardless of the reason for termination.
During this 2-year period, a former Apricot Lane franchisee is prohibited from owning or being involved in any competing business. This restriction is limited geographically to the franchisee's former territory and within a 10-mile radius of any other Apricot Lane store.
It is important to note that the enforceability of non-competition covenants can vary by state law. Prospective Apricot Lane franchisees should consult with legal counsel to understand the specific restrictions and their enforceability in their state.