After termination or expiration of an Apricot Lane franchise, what geographic area is covered by the non-competition covenant?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.B in Franchise Agreement | For 2 years after expiration or termination for any reason, you may not own or be involved in competing business within your former Territory or within 10 miles of any other Store. (Subject to state law.) |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–41)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Section 17.B of the franchise agreement outlines the non-competition covenant that applies after the franchise agreement expires or is terminated. This covenant restricts a former franchisee from engaging in a competing business for a period of two years.
The geographic scope of this restriction includes the franchisee's former territory. Additionally, the non-compete extends to a 10-mile radius around any other Apricot Lane store. This means that after leaving the Apricot Lane system, a franchisee cannot operate or be involved in a competing business within their previous territory or within 10 miles of any other existing Apricot Lane location.
It is important to note that the enforceability of non-competition covenants can vary by state law. Prospective franchisees should consult with legal counsel to understand the specific regulations in their state regarding non-compete agreements. This will help them assess the practical limitations and implications of this clause should they decide to exit the Apricot Lane franchise system.