What are the options for the transferee regarding the franchise agreement when transferring an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The transferee must, at FRANCHISOR's election, either assume this Agreement in writing or execute FRANCHISOR's then-current standard franchise agreement (which may provide for higher fees, expenditures, duration, and different rights and obligations than are provided in this Agreement), provided, however, that the term thereof shall not be greater than the remaining term of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, when a franchisee transfers their Apricot Lane franchise, the transferee has two options regarding the franchise agreement. The transferee can either assume the existing franchise agreement in writing or execute Apricot Lane's then-current standard franchise agreement.
If the transferee assumes the existing agreement, they step into the shoes of the previous franchisee and continue operating under the terms of the original agreement. Alternatively, Apricot Lane can require the transferee to sign a new franchise agreement. This new agreement may include different terms than the original, such as higher fees, different expenditure requirements, a different duration, and altered rights and obligations.
However, the FDD specifies that if a new agreement is required, the term of the new agreement cannot exceed the remaining term of the original franchise agreement. This provides some protection to the transferee, ensuring they won't be locked into a longer commitment than the initial agreement allowed. It is important to note that the transferee must also complete Apricot Lane's training program to the franchisor's satisfaction, regardless of which option is chosen.