Does Apricot Lane have an obligation to assist the franchisee in negotiating the terms of the lease?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
It is understood by FRANCHISEE that:
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- FRANCHISEE is responsible for negotiating the lease, and the terms of the lease, except those provisions required to be included by this Agreement, shall be as determined by the FRANCHISEE and the lessor. The FRANCHISOR has no obligation to assist FRANCHISEE in negotiating the terms of the lease;
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- FRANCHISOR recommends that FRANCHISEE hire an attorney or an experienced leasing specialist, who is familiar with the negotiation of commercial leases, to review the terms of the lease since the terms of the lease are the responsibility of the FRANCHISEE as to whether the lease terms are satisfactory and whether FRANCHISEE wants to sign the lease;
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- Neither by assisting FRANCHISEE in finding a location, by approving of the FRANCHISEE's site, by approving the FRANCHISEE's lease, nor by helping FRANCHISEE with the negotiation of the lease, does FRANCHISOR warrant in any way that the site or lease terms are adequate for FRANCHISEE's needs or purposes. FRANCHISOR's reviews, approvals, and assistance are based on its own criteria and are not a guaranty that FRANCHISEE will succeed in the site selected or under the terms of the lease approved by FRANCHISOR.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the franchisee is responsible for negotiating their own lease terms. Apricot Lane has no obligation to assist in these negotiations. The FDD does state that Apricot Lane recommends that franchisees hire an attorney or experienced leasing specialist to review the lease terms.
This means that prospective Apricot Lane franchisees must independently handle lease negotiations, bearing the responsibility of securing favorable terms. It is crucial for franchisees to understand this aspect, as lease terms can significantly impact the profitability and long-term viability of their Apricot Lane business. Engaging a qualified professional is highly recommended to navigate the complexities of commercial leases.
While Apricot Lane may assist in finding a location or approving the franchisee's site and lease, this does not warrant that the site or lease terms are adequate for the franchisee's needs. Apricot Lane's reviews, approvals, and assistance are based on its own criteria and are not a guarantee of success at the selected site or under the approved lease terms. The franchisee must provide Apricot Lane with a copy of all communications between the franchisee, the landlord, and any leasing specialist involved.