What is the required action for an Apricot Lane franchisee to accept an extension to secure a suitable site?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
or will be available for development of a Specialty Store or that FRANCHISEE will be permitted by the lessor or FRANCHISOR to open the Franchised Business in such center(s) and/or geographic area. FRANCHISOR is not required to give preference to any particular franchisee over another, if both have open licenses and both have indicated preferences for the same center(s) or geographic area and may elect in its sole discretion which franchisee to finally approve for a particular center or area.
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- A suitable site must be secured by FRANCHISEE and approved by FRANCHISOR within _______ calendar months from date the Franchise Agreement is executed. By mutual agreement, extensions to this calendar period may be granted in three (3) calendar month increments by the issuance of a written letter from FRANCHISOR to FRANCHISEE and accepted in writing by FRANCHISEE.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, after executing the Franchise Agreement, a franchisee has a set period to secure an approved site. This period is not specified in the excerpt. Extensions to this period may be granted in three-month increments, provided Apricot Lane issues a written letter to the franchisee, and the franchisee accepts it in writing. Apricot Lane is not obligated to grant any extensions and may decline at its discretion.
If a suitable site is not secured and approved within the initial timeframe or any granted extensions, Apricot Lane has the right to terminate the Franchise Agreement. In such a case, Apricot Lane will retain the $5,000 installment on the initial franchise fee that the franchisee paid.
This highlights the importance of site selection and the potential financial risk involved. Prospective Apricot Lane franchisees should carefully consider the timeline for securing a location and the possibility of needing an extension, as failure to secure an approved site can result in the loss of a significant portion of their initial investment. It would be prudent to discuss site selection strategies and typical approval timelines with existing franchisees to better understand the practical challenges involved.