Under what conditions can Apricot Lane require a franchisee to stop selling specific merchandise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISOR may establish and modify in its sole discretion standards and specifications regarding the merchandise that may be carried and the services that may be provided from the Franchised Business, including those required and recommended vendors and the type, brand, amount and variety of merchandise to be carried. FRANCHISEE shall abide by all such requirements, standards and specifications. FRANCHISOR has the right in its sole discretion to require FRANCHISEE to discontinue offering for sale any merchandise or services or the merchandise of any vendor not specifically approved by FRANCHISOR in its sole discretion. FRANCHISOR's standards and specifications, including lists of required and recommended merchandise or vendors, may be part of the Confidential Operations Manual or provided in any other format as FRANCHISOR determines, and may be modified from time to time by FRANCHISOR. FRANCHISEE shall carry an amount of merchandise reasonably adequate to meet the needs of its customers. FRANCHISOR may also issue standards and specifications for products, materials and supplies used in the Franchised Business, including recommended vendors, types and brands of products, materials and supplies. All products, materials and supplies used in the Franchised Business must meet these standards and specifications. FRANCHISOR may limit the number of recommended suppliers with whom FRANCHISEE may deal, designate sources that FRANCHISEE must use and/or refuse any of FRANCHISEE's requests to approve a supplier or merchandise for any reason, including that FRANCHISOR has already designated an exclusive source (which might be FRANCHISOR or its affiliate) for particular merchandise, goods or services or if FRANCHISOR believes that doing so is in the best interests of the Specialty Stores network.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Apricot Lane has the right to require a franchisee to discontinue offering specific merchandise for sale under certain conditions. Apricot Lane may establish and modify standards and specifications regarding the merchandise that may be carried in the store. These standards can include required and recommended vendors, as well as the type, brand, amount, and variety of merchandise to be carried.
Apricot Lane has the right to require a franchisee to discontinue offering for sale any merchandise or services, or the merchandise of any vendor, that has not been specifically approved by Apricot Lane. These standards and specifications, including lists of required and recommended merchandise or vendors, may be part of the Confidential Operations Manual or provided in any other format determined by Apricot Lane, and may be modified from time to time.
This means that as a franchisee, you must adhere to Apricot Lane's standards and specifications regarding merchandise. Apricot Lane can limit the suppliers you use, designate specific sources you must use, and/or refuse your requests to approve a supplier or merchandise for any reason. This includes situations where Apricot Lane has already designated an exclusive source for particular merchandise, goods, or services, or if Apricot Lane believes that doing so is in the best interests of the Apricot Lane network.