Under what circumstance related to franchise application can Apricot Lane terminate the franchise agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Any failure to comply with this Section 11L (including any failure to comply with the mandatory provisions of the Confidential Operations Manual applicable to the E-Commerce Platform) by Franchisee confers on Franchisor all rights and remedies under this Agreement and applicable law, including the right to permanently terminate this Agreement under Section 18, as well as the right to terminate Franchisee's right to use the E-Commerce Platform under this Section 11L (without affecting any other rights of Franchisee under this Agreement). Any termination of Franchisee's rights under this Section 11L shall be effective on notice thereof after notice of breach (with opportunity to cure) and Franchisee's failure to cure within ten (10) days thereafter. On any termination (for whatsoever reason) or expiration of this Agreement (or termination of Franchisee's right to use the E-Commerce Platform under this Section 11L), Franchisee shall immediately (i) terminate the Provider Agreements (if applicable) and comply with the posttermination obligations thereunder; and (ii) cease use of the E-Commerce Platform, including marketing and sale of any merchandise, and the use of any and all Marks and Content in connection therewith."
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
Based on the 2025 Apricot Lane Franchise Disclosure Document, the franchise agreement can be terminated if the franchisee fails to comply with Section 11L, which pertains to the E-Commerce Platform. This includes not adhering to the mandatory provisions outlined in the Confidential Operations Manual related to the E-Commerce Platform.
Specifically, if a franchisee breaches any aspect of Section 11L, Apricot Lane has the right to permanently terminate the agreement under Section 18. Additionally, Apricot Lane can terminate the franchisee's right to use the E-Commerce Platform under Section 11L without affecting any other rights the franchisee may have under the agreement.
Termination of the franchisee's rights under Section 11L becomes effective after notice of the breach and failure to cure it within ten days. Upon termination or expiration of the agreement, the franchisee must immediately terminate any Provider Agreements, cease using the E-Commerce Platform, and discontinue the marketing and sale of merchandise using any related Marks and Content.