Are there any exceptions to the customer limitations for Apricot Lane franchisees?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
r party hereby agree as follows:
SECTION 1: GRANT, LOCATION AND INITIAL FRANCHISE FEE
A. Grant
FRANCHISOR hereby grants to FRANCHISEE, upon the terms and conditions herein contained, the right, franchise and privilege (the "franchise") to use the Mark "APRICOT LANE" as provided hereinafter (the "Designated Mark") and such other Marks as FRANCHISOR may authorize from time to time in the operation of a Specialty Store at a single approved location as provided in Section 1.B below. If a location for the Specialty Stores has not been selected and approved on signing this Agreement, the Designated Mark will be inserted in this Section 1.A no later than when a location is selected and approved as provided under the "Open License" terms and in Section 1.B below. The grant is limited to the right to operate a Specialty Store under the Designated Mark at the location designated in Section 1.B for retail over-the-counter sales to consumers of approved merchandise and services as hereinafter provided and any sales by the Franchised Business through any other means such as at wholesale, by mail order, through catalogs, electronic commerce, any other distribution channel, or at fairs or trade shows is prohibited without the express prior written consent of FRANCHISOR. If FRANCHISOR approves such sales, FRANCHISEE's sales shall comply with all conditions set forth in such consent.
B. Location
| The Franchised Business will be located within the Territory described in Section 2.A of this Agreement.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 35)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchise is granted for retail over-the-counter sales to consumers of approved merchandise and services at a single, approved location. However, this grant has limitations. Apricot Lane franchisees are prohibited from engaging in sales through other channels such as wholesale, mail order, catalogs, electronic commerce, or at fairs or trade shows without the franchisor's express prior written consent. If Apricot Lane approves such sales, the franchisee must comply with all conditions set forth in that consent.
An exception exists for franchisees participating in the E-Commerce Platform Program. Franchisees who qualify and are approved for this program may sell certain fashion apparel, accessories, and other merchandise to customers through the franchisor-approved e-commerce distribution channel. To qualify, franchisees must not be in default under their franchise agreement, meet the franchisor's current criteria for participation, and submit all required application materials, including a signed Amendment for E-Commerce Platform.
This means that while the primary focus is on in-store retail sales, Apricot Lane franchisees have a potential avenue to expand their reach through the approved e-commerce platform, provided they meet the necessary qualifications and obtain the franchisor's consent. This e-commerce opportunity could be a significant benefit, allowing franchisees to tap into a broader customer base and increase revenue streams beyond the physical store location.