What are the restrictions or requirements for Apricot Lane franchisees regarding alterations to the premises, as outlined in Section 14?

According to the 2025 Apricot Lane FDD, franchisees face specific restrictions regarding alterations to their premises. Franchisees are prohibited from making any alterations to the premises, or from replacing or altering equipment, fixtures, slatwall, paint colors, or signs without obtaining prior written approval from Apricot Lane. This requirement ensures that all franchised locations maintain a consistent brand image and adhere to the franchisor's standards.

Apricot Lane may also require franchisees to periodically make capital expenditures to remodel, redesign, modernize, and change the franchised business, including replacing and modernizing the premises. These changes are intended to ensure that the franchised business reflects the current image of Apricot Lane stores. All remodeling, modernization, or changes to the premises must be done according to the standards and specifications prescribed by Apricot Lane and with their prior written approval. Replacements must also conform to Apricot Lane's current quality standards and specifications and must be approved in writing.

The FDD specifies that franchisees may be required to remodel, redesign, modernize, or change the premises no more than once during the term of the agreement or its renewal, unless the lease for the premises requires more frequent changes. The franchisee's required expenditures for these changes and modifications are capped at the lesser of two percent of the franchisee's average annual gross revenues or $15,000. These restrictions and requirements are put in place to maintain brand consistency and quality across all Apricot Lane franchise locations, while also ensuring that franchisees do not overspend on renovations.