What does it mean for an Apricot Lane franchisee to have an 'Open License'?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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provided that if no specific location has been identified, then FRANCHISEE has an "Open License," which means that FRANCHISEE has a right to establish a Specialty Store in the future at a site mutually agreed upon in a designated geographic area under the terms and conditions
provided for in Exhibit A to this Agreement. Once an agreed location is secured for operation of the Specialty Store, it will be set forth above. FRANCHISEE acknowledges that the franchise awarded by this Agreement is only for the operation of a Franchised Business under the Designated Mark at the location set forth above and at no other location whatsoever. FRANCHISOR and FRANCHISEE expressly agree that if the specific location and Designated Mark for the Franchised Business are not determined at the time this Agreement is signed, that circumstance alone does not and shall not constitute a failure to specify essential terms of this Agreement or cause this Agreement to be unenforceable. FRANCHISEE hereby undertakes the obligations to secure premises for the Specialty Store approved by FRANCHISOR and to open and operate the Franchised Business under the System at that location as provided in this Agreement.
C. Initial Franchise Fee
In consideration of the franchise granted herein, FRANCHISEE shall pay to FRANCHISOR an initial franchise fee of . This initial franchise fee shall be paid in full on execution of this Agreement unless FRANCHISEE has an Open License.
If FRANCHISEE has an Open License, the initial franchise fee shall be paid in two installments. The first installment of Five Thousand Dollars ($5,000) is due and payable on execution of this Agreement and the balance is due and payable in full upon request for a lease by FRANCHISEE after the negotiation of a letter of intent for the location of the Franchised Business with the lessor. Failure to pay the balance of the initial franchise fee when due shall be grounds for termination of this Agreement.
The initial franchise fee and any portion thereof shall be deemed fully earned when due and payable as provided above
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, an "Open License" means that the franchisee has the right to establish a store in the future at a mutually agreed-upon site within a designated geographic area, as detailed in Exhibit A of the franchise agreement. This situation arises when a specific location for the Apricot Lane store has not been identified at the time the Franchise Agreement is signed. Once a location is secured and agreed upon, it will be formally documented in the agreement.
Having an Open License does not invalidate the franchise agreement if the location and Designated Mark are not determined when the agreement is signed. The franchisee is still obligated to find premises for the store that are approved by Apricot Lane and to operate the business according to the standards outlined in the agreement.
Financially, if an Apricot Lane franchisee has an Open License, the initial franchise fee is paid in two installments. The first installment of $5,000 is due upon signing the agreement. The remaining balance is due when the franchisee requests a lease after negotiating a letter of intent for the store's location with the lessor. Failure to pay the balance when due can result in termination of the agreement. The initial franchise fee is considered fully earned when it is due and payable and is generally non-refundable, except as specifically provided in Section 6.C of the agreement.