What was the amount of franchise fees receivable for Apricot Lane in 2023?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
- ACCOUNTS RECEIVABLE
Accounts Receivable consists of the following at December 31:
| 2024 | 2023 | |
|---|---|---|
| Franchise Fees Receivable | $ 222,000 | $ 207,000 |
| Royalty & Advertising Fees Receivable | 117,073 | 140,764 |
| Reimbursable Franchise Cost Receivable | 18,076 | 24,017 |
| 357,149 | 371,781 | |
| Allowance for Doubtful |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchise fees receivable as of December 31, 2023, were $207,000. This figure represents the total amount of franchise fees that Apricot Lane had earned but not yet collected from its franchisees at the end of that year.
For a prospective Apricot Lane franchisee, this information provides insight into the financial health and accounting practices of the franchisor. Franchise fees receivable are a normal part of business operations, especially in franchising, where initial fees are often paid over time or have payment terms extending beyond the immediate period when the franchise agreement is signed.
It's also important to note that while franchise fees receivable represent money owed to Apricot Lane, there is also an allowance for doubtful accounts, which was ($45,004) in both 2024 and 2023. This allowance accounts for the possibility that some portion of the receivable fees may not be collected. The net accounts receivable, after deducting this allowance, was $326,777 as of December 31, 2023.