Under what conditions is an Apricot Lane franchisee prohibited from owning or being involved in a competing business during the franchise term?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |
|---|---|---|---|
| l. | Franchisor approval of transfer by franchisee | Section 20.B in Franchise Agreement | Transfers to third parties must meet conditions listed in "m" below. Ownership by or transfer to entity which is wholly-owned by same individual(s) approved by us as the franchisee is permitted if: the owners guarantee and agree to be bound by Franchise Agreement; the entity is not engaged in any other business; you provide specified information about the entity and its ownership to us; ownership in the entity is subject to same transfer restrictions as are applicable to Franchisee; restrictive stock legend required. |
| m. | Conditions for franchisor approval of transfer | Section 20.C in Franchise Agreement | All transferees must meet our standards. If transfer will change control of the Franchised Business: we must have declined right of first refusal; and the transferee must assume your obligations, satisfactorily complete training, sign then-current form of Franchise Agreement and you must not be in default at time of transfer, pay all amounts owed us, pay transfer fee, sign general release of claims against us, sign noncompetition agreement in favor of us and transferee. We must approve material terms of transfer. |
| n. | Franchisor's right of first refusal to acquire franchisee's business | Section 20.F in Franchise Agreement | You must notify us 45 days before a proposed transfer. We or our nominee have 10 days after your written notice containing all required information to match the terms offered. |
| o. | Franchisor's option to purchase franchisee's business | N/A | |
| p. | Death or disability of franchisee | Section 20.D in Franchise Agreement | Franchise (or interest) must be transferred to a new owner subject to our approval within 6 months after death or permanent incapacity of Franchisee or owner of controlling interest. |
| q. | Non-competition covenants during the term of the franchise | Section 17.A in Franchise Agreement | No diversions to competitors; no ownership or involvement in competing business without prior written approval of COUNTRY VISIONS. (Subject to state law.) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, during the term of the franchise agreement, franchisees are restricted from engaging in competitive business activities. Specifically, an Apricot Lane franchisee cannot own or be involved in a competing business without obtaining prior written approval from COUNTRY VISIONS. This restriction is subject to state law, meaning the enforceability and specific terms may vary depending on the franchisee's location.
This non-compete clause is designed to protect Apricot Lane's market position and proprietary business methods. It prevents franchisees from directly applying the knowledge and resources gained from operating an Apricot Lane store to benefit a competing venture. The requirement for written approval gives Apricot Lane control over potential conflicts of interest and ensures that franchisees remain fully committed to the success of their Apricot Lane business.
For a prospective franchisee, this means that while operating an Apricot Lane franchise, they generally cannot have any ownership or active role in another business that competes with Apricot Lane. Obtaining written approval from COUNTRY VISIONS is essential if a franchisee wishes to pursue any such related business opportunities during the franchise term. This restriction is common in franchising to protect the brand and prevent franchisees from diverting resources or knowledge to competing businesses.