Under what condition can an Apricot Lane franchisee divert business or customers to a competitor?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Associate therefore agrees that other than the Franchise Business licensed under a Franchise Agreement, the Associate, will not during the Term and renewal Term of the Franchise Agreement:
(c) Divert or attempt to divert any business related to, or any customer or account of the Franchised Business, the Franchisor's business, the business of any affiliate of the Franchisor or any other franchisee's business, by direct inducement or otherwise, or divert or attempt to divert the employment of any employee of Franchisor or another franchisee licensed by Franchisor, to any Competitive Business by any direct inducement or otherwise; or
(d) Without the Franchisor's express written permission, which may be granted or denied in the Franchisor's sole discretion, become an exclusive distributor for any third-party vendor or obtain exclusive distribution rights for any non-APRICOT LANE Products.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from diverting business or customers to a competitor during the term and renewal term of the Franchise Agreement. However, there is one specific condition under which an Apricot Lane franchisee can divert business or customers to a competitor.
Specifically, an Apricot Lane franchisee can divert business or customers to a competitor if they obtain the Franchisor's express written permission to do so. This permission may be granted or denied at the Franchisor's sole discretion. Without this express written permission, the franchisee is prohibited from diverting any business related to, or any customer or account of the Franchised Business, the Franchisor's business, the business of any affiliate of the Franchisor, or any other franchisee's business to a Competitive Business.
This condition highlights the importance of maintaining a strong relationship with Apricot Lane and seeking explicit approval for any activities that could potentially benefit a competitor. It also underscores the franchisor's control over the brand and its commitment to protecting the interests of the entire franchise system. Franchisees should carefully consider this restriction and its implications for their business operations and future plans.