Under what circumstances does the Apricot Lane franchisor reserve the right to terminate the Option?

According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisor reserves the right to terminate the Option under specific circumstances. The Option refers to the franchisee's opportunity to develop a Specialty Store at a designated Option Location.

Apricot Lane can terminate the Option if the franchisee is found to be in default of the Franchise Agreement or the Premises lease. Additionally, the Option will automatically terminate if the Franchise Agreement itself is terminated for any reason. This means that the franchisee must remain in compliance with all aspects of their existing franchise agreement and lease to maintain the right to develop the additional location.

This clause protects Apricot Lane by ensuring that only franchisees in good standing are granted the opportunity to expand. For a prospective franchisee, this highlights the importance of adhering to the terms of their initial agreement to maintain eligibility for future expansion opportunities. It also emphasizes the interconnectedness of the Franchise Agreement, the Premises lease, and the Location Option Agreement.