Who is responsible for securing substitute premises for an Apricot Lane franchise if relocation is necessary?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
If there is no renewal option and FRANCHISEE cannot through reasonable efforts secure the right to maintain possession of the Premises under a new lease, or if FRANCHISOR notifies FRANCHISEE no later than twelve (12) months before expiration of the term that in its judgment the Franchised Business should be relocated, FRANCHISEE must secure substitute premises approved by FRANCHISOR, in its sole discretion, under a lease that includes the lease clauses required under Section 4.C of this Agreement.
It is fully understood by FRANCHISEE that FRANCHISEE is solely responsible for timely commencing and sustaining efforts needed to either maintain possession of the Premises or to secure substitute premises before expiration of the term and that FRANCHISEE must keep FRANCHISOR fully and timely informed of all such matters;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisee is solely responsible for securing substitute premises if relocation becomes necessary. This responsibility includes commencing and sustaining efforts to either maintain possession of the current premises or to find a suitable substitute before the expiration of the franchise term. The franchisee must also keep Apricot Lane fully informed about all activities related to securing the premises.
Specifically, if there is no lease renewal option and the franchisee cannot secure the right to maintain possession of the premises, or if Apricot Lane determines that the business should be relocated, the franchisee must secure substitute premises. These substitute premises must be approved by Apricot Lane at its sole discretion, and the lease must include specific clauses as required by the franchise agreement.
This requirement places a significant burden on the franchisee. They bear the risk and cost of finding and securing a new location if the original lease cannot be renewed or if Apricot Lane requires relocation. The franchisee must also ensure that the new location meets Apricot Lane's standards and that the lease terms are acceptable to the franchisor. Failure to secure an approved substitute premises could jeopardize the franchise renewal.
Prospective Apricot Lane franchisees should carefully consider the implications of this provision, including the potential costs and risks associated with relocation. It would be prudent to discuss with Apricot Lane the criteria for approving substitute premises and the types of support they might offer during a relocation process. Understanding these factors can help a franchisee better prepare for and manage the possibility of needing to relocate their Apricot Lane business.