Does Apricot Lane recommend that franchisees seek professional assistance with lease negotiations?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
will duly execute and deliver to FRANCHISOR the Collateral Assignment of Lease attached hereto as Exhibit G.
D. FRANCHISEE's Lease Negotiation Responsibility
It is understood by FRANCHISEE that:
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- FRANCHISEE is responsible for negotiating the lease, and the terms of the lease, except those provisions required to be included by this Agreement, shall be as determined by the FRANCHISEE and the lessor. The FRANCHISOR has no obligation to assist FRANCHISEE in negotiating the terms of the lease;
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- FRANCHISOR recommends that FRANCHISEE hire an attorney or an experienced leasing specialist, who is familiar with the negotiation of commercial leases, to review the terms of the lease since the terms of the lease are the responsibility of the FRANCHISEE as to whether the lease terms are satisfactory and whether FRANCHISEE wants to sign the lease;
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- Neither by assisting FRANCHISEE in finding a location, by approving of the FRANCHISEE's site, by approving the FRANCHISEE's lease, nor by helping FRANCHISEE with the negotiation of the lease, does FRANCHISOR warrant in any way that the site or lease terms are adequate for FRANCHISEE's needs or purposes.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees are responsible for negotiating their own lease terms, with the franchisor having no obligation to assist in these negotiations. However, Apricot Lane recommends that franchisees hire an attorney or an experienced leasing specialist familiar with commercial leases to review the lease terms. This recommendation underscores the importance of franchisees ensuring the lease terms are satisfactory before signing, as the responsibility for the lease terms ultimately falls on them.
Apricot Lane does offer some leasing assistance, as they may recommend a national real estate broker or leasing specialist to assist with lease negotiation and lease comment services. While the use of Apricot Lane's recommended leasing specialist is optional, franchisees who opt for this service will bear the costs at the rates provided by Apricot Lane or as agreed upon with the independent contractor. Franchisees are also required to provide Apricot Lane with copies of all communications between themselves, the landlord, and the leasing specialist.
Despite any assistance or recommendations Apricot Lane provides regarding the premises, they make no warranties about the suitability of the location for an Apricot Lane store. The franchisor's recommendations only indicate that they believe the premises meet their general criteria for acceptability. Franchisees are responsible for their own independent investigation of the premises' suitability. Apricot Lane also requires franchisees to submit the proposed lease for approval before execution, and this approval may be conditional upon including terms acceptable to Apricot Lane and executing the Addendum to Lease and Collateral Assignment of Lease.
Apricot Lane emphasizes that they assume no liability for any agreements, representations, or warranties made between the franchisee, landlord, and/or any lease specialist. They are not obligated for any damages arising from the actions of any landlord, leasing specialist, or anyone involved in lease negotiations. This highlights the importance of franchisees conducting thorough due diligence and seeking professional advice to protect their interests during lease negotiations.