Regarding third-party obligations, is an Apricot Lane franchisee required to comply with the requirements of the lease for the premises?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall pay all debts of the Franchised Business in the ordinary course of business and shall otherwise comply with all obligations to third parties concerning the operation of the Franchised Business, including compliance with the requirements of the lease for the Premises and of any supplier contracts. Without limiting the foregoing, FRANCHISEE must pay all suppliers of products and services to the Franchised Business promptly, and will be liable for any damages incurred by FRANCHISOR on account of any failure to do so. In addition, FRANCHISOR will not assume any liability or be deemed liable for any agreements, representations, purchases for goods or services or warranties made outside of this agreement, nor will FRANCHISOR be obligated for any payments to third parties as a result of any of the above.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, franchisees must comply with all obligations to third parties concerning the operation of the franchised business. This explicitly includes compliance with the requirements of the lease for the premises and any supplier contracts.
Apricot Lane franchisees are responsible for paying all debts of the franchised business in the ordinary course of business. They are also liable for any damages incurred by Apricot Lane due to a failure to pay suppliers promptly. Apricot Lane will not assume liability for any agreements, representations, purchases for goods or services, or warranties made outside of the franchise agreement, nor will Apricot Lane be obligated for any payments to third parties as a result of any of the above.
In addition, Apricot Lane requires franchisees to submit the proposed lease for the approved location for approval before the franchisee signs it. Apricot Lane's approval may depend on including terms acceptable to Apricot Lane in the lease. At Apricot Lane's option, the lessor and franchisee must execute and deliver the Addendum to Lease and the Collateral Assignment of Lease.