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

According to Apricot Lane's 2025 Franchise Disclosure Document, Apricot Lane has the right to terminate the Option under specific circumstances. Apricot Lane reserves the right to 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 is terminated for any reason.

This means that a prospective Apricot Lane franchisee's ability to develop a Specialty Store at the Option Location is contingent upon their compliance with the existing Franchise Agreement and Premises lease. Any failure to adhere to the terms of these agreements could result in the termination of the Option, preventing the franchisee from developing the Specialty Store at the Option Location.

It is important for potential Apricot Lane franchisees to understand the terms and conditions of both the Franchise Agreement and the Premises lease to avoid any defaults that could lead to the termination of the Option. This includes ensuring timely payments, adhering to operational standards, and complying with all other requirements outlined in the agreements. Franchisees should also be aware that the termination of the Franchise Agreement for any reason will automatically result in the termination of the Option.