Is the Apricot Lane tenant released from liability if the assignment to a franchisee is denied?

According to the 2025 Apricot Lane Franchise Disclosure Document, a tenant is not released from liability if the assignment to a franchisee is denied. The document states that even if an assignment is made, the tenant remains responsible for rent, other sums due, and the performance of all obligations and covenants under the lease.

This means that if an Apricot Lane franchisee attempts to assign their lease to another franchisee, but the landlord denies the assignment, the original franchisee remains liable for all lease obligations. This liability continues regardless of the attempted assignment. The franchisee cannot simply walk away from the lease if the assignment is not approved.

This provision protects the landlord by ensuring that there is always a responsible party for the lease obligations. It also places a significant responsibility on the Apricot Lane franchisee to carefully vet potential assignees and ensure that they are likely to be approved by the landlord. Franchisees should consider this ongoing liability when negotiating lease terms and planning for potential exit strategies.

In the event that the Apricot Lane franchisee defaults, the franchisor has the right, but not the obligation, to assume the lease. If the franchisor assumes the lease, they can then assign it to another qualified franchisee, provided the landlord's consent is obtained. This provides a mechanism for the franchisor to maintain control over the location and ensure continued operation of an Apricot Lane store.