What section of the Apricot Lane franchise agreement outlines the franchisee's responsibilities regarding lease negotiation?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
to as Exhibit E. At FRANCHISOR's option, FRANCHISEE will duly execute and deliver to FRANCHISOR the Collateral Assignment of Lease attached hereto as Exhibit G.
D. FRANCHISEE's Lease Negotiation Responsibility
It is understood by FRANCHISEE that:
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- FRANCHISEE is responsible for negotiating the lease, and the terms of the lease, except those provisions required to be included by this Agreement, shall be as determined by the FRANCHISEE and the lessor. The FRANCHISOR has no obligation to assist FRANCHISEE in negotiating the terms of the lease;
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- FRANCHISOR recommends that FRANCHISEE hire an attorney or an experienced leasing specialist, who is familiar with the negotiation of commercial leases, to review the terms of the lease since the terms of the lease are the responsibility of the FRANCHISEE as to whether the lease terms are satisfactory and whether FRANCHISEE wants to sign the lease;
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- Neither by assisting FRANCHISEE in finding a location, by approving of the FRANCHISEE's site, by approving the FRANCHISEE's lease, nor by helping FRANCHISEE with the negotiation of the lease, does FRANCHISOR warrant in any way that the site or lease terms are adequate for FRANCHISEE's needs or purposes. FRANCHISOR's reviews, approvals, and assistance are based on its own criteria and are not a guaranty that FRANCHISEE will succeed in the site selected or under the terms of the lease approved by FRANCHISOR. Initial_______
E. FRANCHISEE Indemnification of FRANCHISOR
FRANCHISEE hereby indemnifies and agrees to hold harmless FRANCHISOR, its officers, directors, shareholders, partners, heirs, estates, employees and agents against any claims, actions, damages, losses, liability, and expense, including reasonable costs of attorney fees, court costs, processing costs and disbursement costs, that are in connection with site selection, lease negotiation and/or lease comment activities, including those resulting from:
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Section D of Item 23 outlines the franchisee's lease negotiation responsibilities. It clearly states that franchisees are solely responsible for negotiating their lease terms with the lessor, except for specific provisions required by the franchise agreement itself. Apricot Lane has no obligation to assist in these negotiations.
Apricot Lane recommends that franchisees hire an attorney or experienced leasing specialist familiar with commercial leases to review the lease terms. This recommendation underscores the importance of franchisees securing professional guidance to ensure the lease terms are satisfactory and aligned with their business needs. The franchisor's assistance in finding a location or approving the site or lease does not warrant the site's adequacy or the success of the franchisee's business.
Furthermore, the franchisee must provide Apricot Lane with copies of all communications between themselves, the landlord, and any leasing specialists involved. The franchisor explicitly states that it does not assume any liability for agreements, representations, or warranties made between the franchisee, landlord, or lease specialist, nor is it obligated for damages arising from the actions of these parties. This reinforces that franchisees bear the ultimate responsibility for their lease agreements and site selection.