On what page of the Apricot Lane FDD is the section regarding reservation of rights located?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
G. Reservation of Rights
Except as provided in Sections 1.A and 2.B, FRANCHISEE's rights under this Agreement are non-exclusive and FRANCHISOR (and its affiliates) retain the right during the term of this Agreement to engage in any and all activities that FRANCHISOR (and its affiliates) desire, any time or place, and whether or not these activities compete with the Franchised Business, including the right to:
- (1) sell and authorize other parties to sell merchandise, including merchandise bearing the Marks or any similar or related names or marks, to independent retail outlets, at wholesale, at retail to the general population and by means of catalogs, mail order, home parties, Internet, e-commerce and/or television buying networks and/or clubs, whether within or outside of the Territory;
- (2) establish and operate and authorize other parties to establish and operate Specialty Stores, the physical premises of which are located outside of the Territory, on any terms and conditions FRANCHISOR deems appropriate;
- (3) develop, acquire, establish, operate and franchise any retail or other businesses operating under marks other than the Marks at any location, including within the Terriitory; and
- (4) engage in all other activities that this Agreement does not expressly prohibit.
SECTION 3: TERM AND RENEWAL
A. Term
This Agreement becomes effective upon the date it is signed by FRANCHISOR. The term of this Agreement shall expire ten (10) years from the date of commencement of the initial term of the lease for the Premises, unless sooner terminated as provided herein.
B. Renewal
FRANCHISEE shall have the right to renew this franchise for two (2) additional successive terms of five (5) years each, provided that all of the following conditions exist or have been fulfilled, it being understood that failing to fulfill any one of these conditions either by the
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, the section regarding the franchisor's reservation of rights is located on page 94. Specifically, Section G, titled "Reservation of Rights," outlines the activities that Apricot Lane retains the right to engage in during the term of the agreement. These activities include selling merchandise through various channels, establishing stores outside the franchisee's territory, and developing other businesses under different marks, even within the franchisee's territory.
This reservation of rights means that while Apricot Lane grants a franchise for a specific territory, the rights are non-exclusive, except as explicitly stated in Sections 1.A and 2.B of the agreement. Apricot Lane retains the freedom to operate and license others to operate businesses that may compete with the franchisee's business. This includes selling merchandise through different channels like wholesale, retail, online, or through other retail concepts.
For a prospective Apricot Lane franchisee, this implies that the franchisor can engage in activities that might directly compete with their franchised business. The franchisee's rights are limited, and Apricot Lane retains significant control over its brand and distribution channels. It is important for potential franchisees to carefully consider these reservations and understand the potential impact on their business before investing in an Apricot Lane franchise.