Is Apricot Lane obligated to grant an extension of time for securing a suitable site?
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.
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- 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, Apricot Lane is not obligated to grant a franchisee an extension of time to secure a suitable site. The FDD states that a franchisee must secure an approved site within a specified number of months from the franchise agreement date. Extensions to this period may be granted in three-month increments via a written letter from Apricot Lane, accepted by the franchisee. However, Apricot Lane retains sole discretion in granting such extensions and may decline to do so.
This means that a prospective Apricot Lane franchisee faces the risk of losing their initial $5,000 franchise fee installment if they cannot find and secure an approved site within the initial timeframe. The franchisor has the right to terminate the Franchise Agreement under these circumstances.
Therefore, it is crucial for potential Apricot Lane franchisees to proactively engage in site selection and seek approval promptly. Franchisees should carefully assess their ability to find a suitable location within the initial timeframe and understand that securing an extension is not guaranteed. This policy underscores the importance of thorough preparation and efficient execution in the early stages of establishing an Apricot Lane franchise.