Under what condition can the Apricot Lane franchisor delay the opening of a franchised business?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
provided that if no specific location has been identified, then FRANCHISEE has an "Open License," which means that FRANCHISEE has a right to establish a Specialty Store in the future at a site mutually agreed upon in a designated geographic area under the terms and conditions
provided for in Exhibit A to this Agreement. Once an agreed location is secured for operation of the Specialty Store, it will be set forth above. FRANCHISEE acknowledges that the franchise awarded by this Agreement is only for the operation of a Franchised Business under the Designated Mark at the location set forth above and at no other location whatsoever. FRANCHISOR and FRANCHISEE expressly agree that if the specific location and Designated Mark for the Franchised Business are not determined at the time this Agreement is signed, that circumstance alone does not and shall not constitute a failure to specify essential terms of this Agreement or cause this Agreement to be unenforceable. FRANCHISEE hereby undertakes the obligations to secure premises for the Specialty Store approved by FRANCHISOR and to open and operate the Franchised Business under the System at that location as provided in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, the franchisee must secure premises approved by Apricot Lane and open the franchised business under the Apricot Lane system. If no specific location has been identified, the franchisee has an "Open License," meaning they have the right to establish a Specialty Store in the future at a mutually agreed-upon site in a designated geographic area under the terms and conditions provided in Exhibit A of the Franchise Agreement.
Once an agreed location is secured for operation of the Specialty Store, it will be set forth in the agreement. Apricot Lane and the franchisee expressly agree that if the specific location and Designated Mark for the Franchised Business are not determined at the time the agreement is signed, that circumstance alone does not constitute a failure to specify essential terms of the agreement or cause the agreement to be unenforceable.
This means that the opening of the Apricot Lane franchised business can be delayed if a specific location has not yet been identified and agreed upon by both the franchisor and franchisee. The franchisee is responsible for securing premises approved by Apricot Lane, and until a location is secured, the franchisee operates under an "Open License."