How are amounts due from an Apricot Lane franchisee for gift card transactions collected?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Gift Card Program
You must participate in our gift card program, currently administered by Ceridian-Stored Value Solutions. These gift cards operate like gift certificates and are redeemable at any participating Store. All new Franchised Businesses must participate in the program. You will purchase from Ceridian-Stores Value Solutions a gift card unit, initial supply of gift cards and set up for $700, which is included in Item 7 under Initial Store Marketing and Point of Purchase expense. You will need to purchase additional "blank" cards and other supplies from Ceridian-Stored Value Solutions at its then current pricing. The customer selects
the amount to put on the gift card from $10 to $500 and this remains in your account and is debited as the card is redeemed along with applicable transaction fees. Inter-store redemptions are reconciled monthly. All amounts due from your Franchised Business for transactions under this program are debited from your designated bank account by Ceridian-Stored Value Solutions. We cannot promise or represent that this program with Ceridian-Stored Value Solutions will continue in the future, and the terms and conditions of the program if it continues may be subject to change. We reserve the right to change administrators of the gift card program or to modify or discontinue the gift card program.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees must participate in the brand's gift card program, which is currently administered by Ceridian-Stored Value Solutions. New franchisees are required to participate in this program. Customers can load amounts from $10 to $500 onto the gift cards, and these funds are held in the franchisee's account. As the gift card is used, the amount is debited, along with any applicable transaction fees. Inter-store redemptions are reconciled monthly to ensure accurate accounting across all participating locations.
For an Apricot Lane franchisee, all amounts due from gift card transactions are automatically debited from the franchisee's designated bank account by Ceridian-Stored Value Solutions. This means that the franchisee does not have to manually track and remit these funds, as the process is automated through the third-party administrator. This automated debiting system simplifies the reconciliation process and ensures timely payment of obligations related to the gift card program.
However, the FDD also notes that Apricot Lane cannot guarantee the continuation of the gift card program with Ceridian-Stored Value Solutions in the future. The terms and conditions of the program are subject to change, and Apricot Lane reserves the right to change administrators, modify, or even discontinue the gift card program altogether. This introduces a degree of uncertainty for franchisees, as they may need to adapt to changes in the gift card program or potentially transition to a new system if the current one is discontinued.