What is the 'Option Location' referring to in the Apricot Lane franchise agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| Country Visions, Inc. ("FRANCHISOR") and |
|---|
| ("FRANCHISEE") having entered into a Country Visions, Inc. Franchise Agreement dated |
| (the "Franchise Agreement"), and in accordance with the terms of the Franchise |
| Agreement, do hereby covenant and agree as follows: |
| 1. |
| FRANCHISEE has been awarded the franchise license for the franchise location |
| identified in Section 1 of the Franchise Agreement. |
| 2. |
| FRANCHISEE has requested the opportunity to develop an additional |
| Specialty Store. FRANCHISEE has identified |
| (the "Option Location") as the desired site for the additional store. FRANCHISEE has requested |
| an option on developing another Specialty Store at the Option Location. |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the 'Option Location' refers to a prospective site for an additional Specialty Store that an existing franchisee is interested in developing. The franchisee must request the opportunity to develop an additional store and identify the desired site as the 'Option Location'.
Apricot Lane grants the franchisee an option to develop a store at this location, which expires 12 months after the Location Option Agreement is executed. To secure this option, the franchisee pays Apricot Lane an Option Fee of $15,000. If the franchisee exercises the option, $5,000 of this fee is credited towards the initial franchise fee for the Option Location, provided the Option Franchise Agreement is executed before the option expires. The remaining balance of the initial franchise fee is due upon execution of the Option Franchise Agreement.
However, Apricot Lane does not guarantee the Option Location will be available for development, and the franchisee is solely responsible for securing the site. The grant of the option is not a final approval of the location, and the franchisee must still comply with all terms and conditions of the Option Franchise Agreement, including securing and leasing the site, construction, and obtaining necessary approvals from Apricot Lane. If the franchisee fails to exercise the option within the 12-month period, the option expires, and Apricot Lane retains the Option Fee as compensation for holding the location off the market.