What was the amount of franchise fees receivable for Apricot Lane in 2024?

According to Apricot Lane's 2025 Franchise Disclosure Document, the franchise fees receivable as of December 31, 2024, were $222,000. The franchise fees receivable represent the amount of revenue that Apricot Lane has earned but not yet collected in cash. This can occur when franchisees are granted payment terms or when fees are due but not yet paid by the end of the accounting period. Franchise fees are recognized as revenue when all the services outlined in the franchise agreement have been performed, typically when the franchisee's store opens. These services include site selection, lease negotiation, marketing, training, and store opening assistance.

Franchise fees receivable is a key indicator of Apricot Lane's financial health and its ability to collect revenue from its franchisees. A high or increasing amount of franchise fees receivable could indicate potential issues with franchisees' ability to pay or with the franchisor's collection efforts. Conversely, a low or decreasing amount could suggest efficient revenue collection processes and strong franchisee financial performance.

In addition to franchise fees receivable, the 2025 FDD also lists other receivables, such as royalty and advertising fees receivable, and reimbursable franchise cost receivable. These figures, along with the allowance for doubtful accounts, contribute to the overall accounts receivable, net, which was $312,145 as of December 31, 2024. Reviewing these figures in totality provides a more comprehensive view of Apricot Lane's financial standing.