Who is responsible for the expense of obtaining fictitious or assumed name registrations required under applicable law for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall take such action as may be necessary to cancel or assign, at FRANCHISOR's option, to FRANCHISOR or FRANCHISOR's designee any assumed name rights or equivalent registration filed with state, city, or county authorities which contains the Designated Mark or any of the Marks or names associated with the System, and FRANCHISEE shall furnish FRANCHISOR with evidence satisfactory to FRANCHISOR of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, the franchisee is responsible for taking action to cancel or assign any assumed name rights or equivalent registrations filed with state, city, or county authorities that contain the Designated Mark or any of the Marks or names associated with the Apricot Lane system. This action is taken at Apricot Lane's option.
Specifically, upon termination or expiration of the franchise agreement, the franchisee must furnish Apricot Lane with evidence of compliance within thirty (30) days. This indicates that the franchisee bears the responsibility for managing and potentially canceling these registrations, implying they also likely bear the associated costs.
In practice, this means that if a franchisee is required to register a fictitious name (also known as a DBA or "doing business as") to operate their Apricot Lane store, they will be responsible for the initial registration fees and any renewal fees during the term of the franchise agreement. Furthermore, upon termination or expiration, they are responsible for the costs associated with canceling or assigning these rights to Apricot Lane or its designee. This is a fairly standard practice in franchising, as franchisees typically handle local regulatory compliance matters.