When is the balance of the initial franchise fee due for an Apricot Lane franchise with an open license?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
initial franchise fee shall be paid in full on execution of this Agreement unless FRANCHISEE has an Open License.
If FRANCHISEE has an Open License, the initial franchise fee shall be paid in two installments. The first installment of Five Thousand Dollars ($5,000) is due and payable on execution of this Agreement and the balance is due and payable in full upon request for a lease by FRANCHISEE after the negotiation of a letter of intent for the location of the Franchised Business with the lessor. Failure to pay the balance of the initial franchise fee when due shall be grounds for termination of this Agreement.
The initial franchise fee and any portion thereof shall be deemed fully earned when due and payable as provided above
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the initial franchise fee payment schedule depends on whether the franchisee has an "Open License." If a franchisee secures an Apricot Lane franchise with an Open License, the initial franchise fee is split into two installments. The first installment of $5,000 is due upon the execution of the Franchise Agreement.
The balance of the initial franchise fee is due when the franchisee requests a lease after negotiating a letter of intent with the lessor for the location of the Franchised Business. The FDD stipulates that failure to pay the balance of the initial franchise fee when it is due can be grounds for termination of the Franchise Agreement.
The initial franchise fee, or any portion thereof, is considered fully earned when it is due and payable. It is non-refundable under any circumstances, except as expressly provided in Section 6.C of the Franchise Agreement. This means that the franchisee needs to be certain of their location and ability to proceed before the balance is paid, as it is generally non-refundable.