What are the obligations of an Apricot Lane franchisee upon termination or non-renewal of the franchise agreement, specifically regarding the assignment of the lease?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |
|---|---|---|---|
| h. | "Cause" defined – non curable defaults | Section 18.A in Franchise Agreement | Failure to satisfactorily complete training program; failure to secure a site or open for business on time; material misrepresentation in applying for franchise; conviction or no contest plea to certain crimes; breach of requirements regarding confidential information; abandonment or unauthorized transfer of franchise; failure to timely transfer interest on death or permanent incapacity; intentional underreporting of Gross Revenues; bankruptcy or insolvency; seizure or foreclosure of assets of Franchised Business; misuse of any Mark; upon 2 or more material defaults in any 12 months; public health or safety hazard; failure to stay open during set hours; repeated defaults in any 12 month period; repudiation of obligations; termination of lease. |
| i. | Franchisee's obligations on termination/non-renewal | Section 19 in Franchise Agreement | Assign lease to us on demand; cease using Marks; cancel or assign assumed name registrations, de-identify premises if lease not assigned; pay all amounts due; return all copies of proprietary information; allow COUNTRY VISIONS to purge its confidential information from your computer; assign telephone numbers; comply with covenants not to compete. (Also see "r" below.); pay liquidated damages |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, upon termination or non-renewal of the franchise agreement, a franchisee has specific obligations outlined in Section 19 of the Franchise Agreement. One key obligation is that the franchisee must assign the store lease to Apricot Lane if the company demands it.
In addition to assigning the lease, the franchisee must cease using Apricot Lane's Marks, and cancel or assign any assumed name registrations. If the lease is not assigned to Apricot Lane, the franchisee is responsible for de-identifying the premises, removing any branding or signage that identifies it as an Apricot Lane store. The franchisee must also pay all outstanding amounts owed to Apricot Lane and return all copies of proprietary information.
Furthermore, the franchisee must allow Apricot Lane to purge its confidential information from the franchisee's computer systems and assign telephone numbers to Apricot Lane. The franchisee must also comply with any non-compete covenants, and may be required to pay liquidated damages as part of the termination or non-renewal process.