Does the post-termination non-compete covenant for Apricot Lane extend to immediate family members of the Associate?

According to the 2025 Apricot Lane FDD, the post-termination covenant not to compete does extend to immediate family members of the Associate. Specifically, for a period of two years after termination or expiration of the Franchise Agreement, the Associate is prohibited from having any direct or indirect interest in a competitive business, and this prohibition includes interests held through any immediate family member.

This means that after leaving Apricot Lane, an Associate cannot bypass the non-compete agreement by having a spouse, child, or other immediate family member own or operate a competing business. This provision is designed to prevent individuals from using family members as proxies to circumvent the restrictions. The non-compete period lasts for two years, starting from the termination date, expiration date, or the date the Associate or Franchisee ceases to conduct business, whichever is later.

This type of clause is relatively common in franchise agreements to protect the franchisor's interests and prevent unfair competition. Prospective Apricot Lane franchisees should carefully consider the implications of this restriction, especially if they have family members who may be interested in similar business ventures. It is important to understand the scope and duration of the non-compete agreement before entering into a franchise agreement.