Are the post-termination obligations for an Apricot Lane franchisee only applicable upon termination, or do they also apply upon expiration of the franchise agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 19: RIGHTS AND DUTIES OF PARTIES UPON EXPIRATION OR TERMINATION
Upon termination or expiration of this Agreement for any reason, all rights granted hereunder to FRANCHISEE shall forthwith terminate, and FRANCHISEE shall comply with the following post-termination obligations that shall survive any such termination or expiration:
A. Discontinue Use of Name and Marks
FRANCHISEE shall immediately cease and forever refrain from any use of the Designated Mark(s) or any of the Marks or any names or marks confusingly similar thereto. FRANCHISEE shall at its own expense discontinue using any and all items bearing any of the Marks.
B. Cessation of Operation
FRANCHISEE shall immediately cease to operate the Specialty Store franchised under this Agreement, and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former FRANCHISEE of FRANCHISOR.
C. Assignment of Lease on Demand
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the post-termination obligations apply both upon termination and expiration of the franchise agreement. Section 19 of the franchise agreement outlines the rights and duties of both parties upon either the expiration or termination of the agreement.
Upon termination or expiration, all rights granted to the franchisee immediately terminate, and the franchisee must comply with several post-termination obligations. These obligations include discontinuing the use of Apricot Lane's names and marks, ceasing operation of the franchised Specialty Store, and refraining from representing themselves as a current or former franchisee.
Additionally, Apricot Lane may demand assignment of the lease, and the franchisee must cease using the Apricot Lane system, advertising, and promotional materials. The franchisee is also required to take necessary actions to cancel or assign any assumed name rights or equivalent registrations containing Apricot Lane's marks or names to Apricot Lane or its designee. These obligations survive the termination or expiration of the agreement and remain in effect until satisfied.