Must all transferees agree in writing to be bound by the Apricot Lane franchise agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
All the transferees must agree in writing to be bound by this Agreement and guarantee. Additionally, if the transfer is of this Agreement or the entire Franchised Business or a substantial part of the assets used therein, or is a transfer of a controlling interest in the Franchised Business or the FRANCHISEE (a controlling interest being the largest ownership interest even if not a majority interest), or is one of a series of transfers which in the aggregate constitute or will effect such a transfer or a change in the controlling interest, all of the following conditions must be met prior to, or concurrently with, the effective date of the transfer:
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, all transferees must agree in writing to be bound by the existing franchise agreement and guarantee. This requirement is part of the conditions for approval of the transfer.
This means that anyone taking over an Apricot Lane franchise must formally commit to upholding all the obligations and responsibilities outlined in the original franchise agreement. This protects Apricot Lane by ensuring that new owners are legally bound to the same terms as the previous owner.
In addition to agreeing to be bound by the existing agreement, the transferee may be required to execute Apricot Lane's then-current standard franchise agreement, which may include higher fees, expenditures, and different rights and obligations. However, the term of the new agreement cannot be longer than the remaining term of the original agreement. This ensures Apricot Lane can update its franchise terms with new owners, while also respecting the initial term agreed upon by the original franchisee.