Can the Apricot Lane System be changed or improved by the franchisor?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | | ("FRANCHISOR"), and | | | | | | | | | | | | | | | | | | ("FRANCHISEE"). | | |
WITNESSETH:
WHEREAS, FRANCHISOR, over a period of time and as the result of the expenditure of time, expertise, effort and money, has developed and owns a valuable and proprietary system, for the establishment, development and operation of specialty retail stores identified by the service mark "APRICOT LANE" ("Specialty Stores") that sell fashion apparel and accessories, home decor, gifts, candles, and jewelry, which System may be changed from time to time; and
WHEREAS, the distinguishing characteristics of the System include, without limitation, distinctive interior layout, decor and color scheme; exclusively designed signage, decorations, furnishings, fixtures and materials; the Confidential Operations Manual; the exclusive product lines, as defined herein, (if any); the Software Package, as defined herein; display, merchandising and marketing of products; retail business operating methods; and methods and techniques for inventory and cost controls, record keeping and reporting, personnel management and training, purchasing, marketing, sales promotion and advertising, all of which may be changed, improved and further developed by FRANCHISOR from time to time (the "System"); and
WHEREAS, FRANCHISOR is the owner of the trade names and service marks "APRICOT LANE" and associated logos and commercial symbols, and such other trade names, trademarks and service marks as are now designated (and may hereinafter be designated in writing by FRANCHISOR) as an integral part of the System (the "Mark(s)"); and
WHEREAS, FRANCHISOR continues to develop, use and control such Marks for the benefit and use of FRANCHISOR and its franchisees in order to identify for the public the source of the products and services marketed thereunder and to represent the System's high standards of operations, quality, products, appearance and service;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisor retains the right to modify the Apricot Lane system. The FDD specifies that the 'System' which includes various elements such as store layout, signage, the operations manual, product lines, software, merchandising, operating methods, and controls, may be changed, improved, and further developed by Apricot Lane from time to time.
This means that as an Apricot Lane franchisee, you must accept and implement any changes or modifications that the franchisor introduces to the system. These modifications can include new trade names, trademarks, computer systems, inventory items, merchandising techniques, or equipment. Franchisees are not allowed to alter the system in any way unless specifically directed by Apricot Lane.
Furthermore, franchisees may be required to make capital expenditures to remodel, redesign, modernize, and change the franchised business to reflect the current image of Apricot Lane stores. However, the FDD states that the franchisee's required expenditures for these changes and modifications during the term of the agreement are capped at the lesser of two percent of the franchisee's average annual gross revenues or $15,000. This provides some financial predictability for franchisees when system-wide changes are implemented.