Does Apricot Lane require the franchisee to be in good standing to renew their franchise agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
to full compliance with the then-current specifications and standards within ninety (90) days from the expiration date of this Agreement;
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- FRANCHISEE pays all amounts owed to FRANCHISOR and its affiliates prior to expiration of the term;
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- FRANCHISEE is not in default under this Agreement or any other agreement between FRANCHISOR and FRANCHISEE or between any affiliate, if any, of FRANCHISOR, at the time FRANCHISEE gives that notice and also at the time the renewal is to take effect, it being understood that the giving of a notice to renew or FRANCHISOR's acceptance thereof will not impair FRANCHISOR's rights to terminate this Agreement as otherwise provided herein;
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Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee must be in good standing to renew their franchise agreement. Specifically, the franchisee must not be in default under the current agreement or any other agreement with Apricot Lane or its affiliates at the time of renewal. This requirement extends to both the time the franchisee gives notice of renewal and when the renewal is set to take effect.
To be eligible for renewal, an Apricot Lane franchisee must also pay all amounts owed to the franchisor and its affiliates before the current term expires. Additionally, the franchisee needs to comply with all provisions of the applicable franchise agreement and any other agreements with Apricot Lane and/or its affiliates throughout the entire term and any subsequent renewals.
Apricot Lane also stipulates that if a franchisee has a history of material disputes or consistently negative interactions with the franchisor, Apricot Lane may, at its sole discretion, refuse to renew the franchise. This underscores the importance of maintaining a positive and compliant relationship with Apricot Lane throughout the franchise term.
These conditions are typical in franchise agreements, as franchisors want to ensure that franchisees who continue to represent their brand are financially responsible, compliant with brand standards, and maintain a positive working relationship with the franchisor.