Is Apricot Lane responsible for construction delays experienced by the franchisee?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE agrees to retain a licensed General Contractor to build the Specialty Store.
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- FRANCHISOR may recommend to FRANCHISEE, at FRANCHISEE's sole option, a pre-approved, experienced, professional General Contractor at such fees as agreed to by the parties in writing. FRANCHISEE is encouraged but not required to use the FRANCHISOR's recommended General Contractor.
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- If FRANCHISEE chooses a licensed General Contractor on its own, one who has not had experience with a Specialty Store, that General Contractor must be approved by FRANCHISOR.
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- FRANCHISOR is available to FRANCHISEE for consultation to assist in the construction bidding process and in selecting a licensed General Contractor, but FRANCHISEE acknowledges that all design, construction, installation and similar contracts are between the FRANCHISEE and such third parties, and FRANCHISOR will bear no responsibility for the same. Furthermore, FRANCHISOR will not be responsible for delayed construction, overruns, equipment or decor item shortages or other design, installation and/or construction problems, or for any loss resulting therefrom.
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 managing the construction of their stores, including selecting an architect and general contractor. While Apricot Lane may offer recommendations or require approval of the franchisee's choices, the document explicitly states that the franchisor bears no responsibility for construction-related issues.
Apricot Lane is not responsible for delays, cost overruns, equipment shortages, or other problems that may arise during the design, installation, or construction of the franchisee's store. The franchisee acknowledges that all contracts for design, construction, and installation are between the franchisee and third-party contractors. This means that the franchisee assumes the risk of these projects and must resolve any issues directly with the contractors.
This arrangement places the onus on the franchisee to carefully manage the construction process and to select reliable contractors. Prospective Apricot Lane franchisees should perform thorough due diligence when choosing contractors and ensure they have adequate contractual protections in place to mitigate potential risks. Franchisees should also factor in potential delays and cost overruns when budgeting for the initial build-out of their Apricot Lane store.
While Apricot Lane may offer assistance during the construction bidding process, it is ultimately the franchisee's responsibility to ensure the project is completed on time and within budget. This highlights the importance of strong project management skills for Apricot Lane franchisees and the need to build a buffer into their timelines and budgets to account for unforeseen issues.