Under what condition can an Apricot Lane franchisee sell merchandise at wholesale?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISOR hereby grants to FRANCHISEE, upon the terms and conditions herein contained, the right, franchise and privilege (the "franchise") to use the Mark "APRICOT LANE" as provided hereinafter (the "Designated Mark") and such other Marks as FRANCHISOR may authorize from time to time in the operation of a Specialty Store at a single approved location as provided in Section 1.B below. If a location for the Specialty Stores has not been selected and approved on signing this Agreement, the Designated Mark will be inserted in this Section 1.A no later than when a location is selected and approved as provided under the "Open License" terms and in Section 1.B below. The grant is limited to the right to operate a Specialty Store under the Designated Mark at the location designated in Section 1.B for retail over-the-counter sales to consumers of approved merchandise and services as hereinafter provided and any sales by the Franchised Business through any other means such as at wholesale, by mail order, through catalogs, electronic commerce, any other distribution channel, or at fairs or trade shows is prohibited without the express prior written consent of FRANCHISOR. If FRANCHISOR approves such sales, FRANCHISEE's sales shall comply with all conditions set forth in such consent.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 35)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, franchisees are generally restricted from selling merchandise at wholesale. The franchise agreement grants the right to operate a specialty store for retail over-the-counter sales to consumers.
However, an Apricot Lane franchisee can engage in sales through other means, such as wholesale, mail order, catalogs, electronic commerce, or at fairs or trade shows, only with the express prior written consent of the franchisor, COUNTRY VISIONS. If such approval is granted, the franchisee must comply with all conditions stipulated in the consent.
This restriction ensures that Apricot Lane maintains control over its brand and distribution channels. A prospective franchisee should discuss with the franchisor the possibility and conditions for obtaining approval to sell merchandise through channels other than the retail store, to fully understand the potential revenue streams and limitations.