What recourse does Apricot Lane have if a franchisee fails to maintain the premises after receiving notice?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
9 of this Agreement.
E. Restrictions After Termination and/or Expiration
The provisions of Section 9 shall survive the expiration or termination of this Agreement.
SECTION 10: MODIFICATION OF THE SYSTEM
A. Maintenance of Premises
FRANCHISEE shall maintain the condition and appearance of the Franchised Premises consistent with FRANCHISOR's standards. FRANCHISEE shall maintain the Premises as is from time to time required to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete equipment, fixtures, signs, decor and repair of the exterior and interior of the Franchised Business. If at any
time in FRANCHISOR's judgment the general state of repair or the appearance of the Franchised Premises or its equipment, fixtures, signs or decor does not meet FRANCHISOR's standards therefore, FRANCHISOR may so notify FRANCHISEE, specifying the action to be taken by FRANCHISEE to correct such deficiency. If FRANCHISEE fails or refuses to initiate within thirty (30) days after receipt of such notice, and thereafter continue, a bona fide program to complete any required maintenance, FRANCHISOR shall have the right, in addition to all other remedies, to enter upon the Franchised Premises and effect such maintenance on behalf of FRANCHISEE and FRANCHISEE shall pay the entire costs thereof on demand.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees are required to maintain the condition and appearance of their premises to meet Apricot Lane's standards. If Apricot Lane determines that the premises' repair or appearance, including equipment, fixtures, signs, or decor, doesn't meet their standards, they will notify the franchisee, specifying the necessary corrective actions.
If the franchisee doesn't start a program to complete the required maintenance within 30 days of receiving the notice and continue it diligently, Apricot Lane has the right to enter the premises and perform the maintenance themselves. The franchisee is then responsible for paying the entire cost of this maintenance upon demand.
However, the franchisee's required expenditures for maintenance or repairs under this paragraph are capped. The expenditures cannot exceed the lesser of one percent (1%) of the franchisee’s annual gross revenues or Five Thousand Dollars ($5,000) per calendar year. This provides a limit to the financial burden Apricot Lane can impose on a franchisee for premises maintenance.