What standards and specifications must an Apricot Lane franchisee follow when remodeling, modernizing, or changing the premises?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
one percent (1%) of the FRANCHISEE's annual gross revenues or Five Thousand Dollars ($5,000), whichever is less, per calendar year.
B. Changes to Business and System Modifications
1. Remodeling, Modernization, Changes to Existing Business
FRANCHISEE may be required to periodically make reasonable capital expenditures to remodel, redesign, modernize and change the Franchised Business and to replace and modernize the Premises so that the Franchised Business will reflect the then-current image intended to be portrayed by the Specialty Stores. All remodeling, modernization, or changes to the Premises must be done in accordance with the standards and specifications as prescribed by FRANCHISOR from time to time and with the prior written approval of FRANCHISOR. All replacements must conform to FRANCHISOR's then-current quality standards and specifications and must be approved by FRANCHISOR in writing. FRANCHISEE may be required to remodel, redesign, modernize or change the Premises not more than once during the term of this Agreement or renewal hereof, or more frequently as required by the lease for the Premises.
2. System Modifications
FRANCHISEE acknowledges that from time to time hereafter FRANCHISOR may change or modify the System, including the adoption and use of new or modified trade names, trademarks, service marks or copyrighted materials, new computer systems, including hardware and software, new inventory items, new merchandising techniques, new equipment or new techniques and that FRANCHISEE will be required to accept, use and display for the purpose of this Agreement any such changes in the System, as if they were part of this Agreement at the time of execution hereof. FRANCHISEE shall not change, modify or alter in any way the System, except as directed by FRANCHISOR.
3. Expenditure Amounts for Changes During Agreement Term
FRANCHISEE's required expenditures during the term of this Agreement, for the changes and modifications listed in Section 10.B.1 and 10.B.2, shall not exceed an amount equal to two percent (2%) of the FRANCHISEE's average annual Gross Revenues (defined in Section 12.C below) or Fifteen Thousand Dollars ($15,000), whichever is less.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees may be required to make capital expenditures to remodel, redesign, modernize, and change their franchised business, including the premises, to reflect the brand's current image. All such changes must adhere to the standards and specifications prescribed by Apricot Lane, which may be updated periodically. These changes also require Apricot Lane's prior written approval, and all replacements must meet the franchisor's current quality standards and specifications, also requiring written approval.
Apricot Lane may require franchisees to remodel, redesign, modernize, or change the premises no more than once during the term of the Franchise Agreement or its renewal, but may require it more frequently if mandated by the lease for the premises. Franchisees are also obligated to maintain the condition and appearance of the franchised premises in accordance with Apricot Lane's standards. This includes replacing worn-out or obsolete equipment, fixtures, signs, and decor, as well as repairing the exterior and interior of the business.
Furthermore, franchisees cannot make alterations to the premises or change equipment, fixtures, slatwall, paint colors, or signs without Apricot Lane's prior written approval. Apricot Lane also reserves the right to modify the system, including adopting new trade names, trademarks, computer systems, inventory items, merchandising techniques, and equipment, which franchisees must accept and use. Franchisees are not allowed to change or alter the system in any way unless directed by Apricot Lane.
The FDD specifies that a franchisee's required expenditures for changes and modifications during the agreement term, as well as for maintenance or repairs, are capped. Specifically, expenditures for changes and modifications cannot exceed the lesser of two percent of the franchisee's average annual gross revenues or $15,000. For maintenance or repairs, the limit is the lesser of one percent of the franchisee's annual gross revenues or $5,000 per calendar year. These financial limitations provide some predictability for franchisees regarding required investments in maintaining and updating their Apricot Lane store.