Under what condition can an Apricot Lane franchisee own or have interest in a business selling similar merchandise to the Specialty Stores?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
limited to provisions for the payment of royalties, operating standards and use of the Marks.
F. Use of Premises by FRANCHISEE
FRANCHISEE may use the Premises only for providing the services and selling the merchandise FRANCHISOR has approved and only in the manner FRANCHISOR specifies. No business, other than the Franchised Business, may be located or operated in the Premises. FRANCHISEE cannot operate the Franchised Business at or from any location other than the Premises without the express prior written consent of FRANCHISOR.
G. Reservation of Rights
Except as provided in Sections 1.A and 2.B, FRANCHISEE's rights under this Agreement are non-exclusive and FRANCHISOR (and its affiliates) retain the right during the term of this Agreement to engage in any and all activities that FRANCHISOR (and its affiliates) desire, any time or place, and whether or not these activities compete with the Franchised Business, including the right to:
- (1) sell and authorize other parties to sell merchandise, including merchandise bearing the Marks or any similar or related names or marks, to independent retail outlets, at wholesale, at retail to the general population and by means of catalogs, mail order, home parties, Internet, e-commerce and/or television buying networks and/or clubs, whether within or outside of the Territory;
- (2) establish and operate and authorize other parties to establish and operate Specialty Stores, the physical premises of which are located outside of the Territory, on any terms and conditions FRANCHISOR deems appropriate;
- (3) develop, acquire, establish, operate and franchise any retail or other businesses operating under marks other than the Marks at any location, including within the Terriitory;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, a franchisee may not operate any business other than the franchised Apricot Lane business from the approved premises without express prior written consent from Apricot Lane. The franchisee can only use the premises for selling merchandise that Apricot Lane has approved and in the manner that Apricot Lane specifies.
Apricot Lane retains the right to sell merchandise, including merchandise bearing the Apricot Lane marks, through various channels such as independent retail outlets, wholesale, retail to the general public, catalogs, mail order, home parties, the Internet, e-commerce, and television buying networks, whether within or outside the franchisee's territory. Apricot Lane also reserves the right to establish and operate Apricot Lane stores outside of the franchisee's territory under terms and conditions they deem appropriate.
Furthermore, Apricot Lane can develop, acquire, operate, and franchise any retail or other businesses under different marks at any location, including within the franchisee's territory. The franchise agreement does not expressly prohibit Apricot Lane from engaging in other activities. Therefore, a franchisee needs explicit written consent from Apricot Lane to operate any other business, especially one that might be seen as competitive, from the Apricot Lane store's premises.