Who bears the expense of the Apricot Lane franchisor's representatives during the opening of the franchised business?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
D. FRANCHISOR Assistance During Opening
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- Prior to, and during commencement of the Franchised Business, FRANCHISOR will furnish to FRANCHISEE, at FRANCHISEE's premises and at FRANCHISEE's expense, up to two (2) of FRANCHISOR's representatives, determined in FRANCHISOR's sole discretion, for the purpose of facilitating the opening of FRANCHISEE's Franchised Business. The expense of providing this assistance is at FRANCHISOR's then-current rates published in the Confidential Operations Manual, which include travel, lodging, and a per diem charge. During this period, such representative will also assist FRANCHISEE in establishing and standardizing procedures and techniques essential to the operation of the Franchised Business and shall assist in training personnel.
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- Should FRANCHISOR deem it necessary to provide additional assistance FRANCHISEE shall reimburse FRANCHISOR for the expense of FRANCHISOR providing such additional assistance at the then-current rates published in the Confidential Operations Manual, including, but not limited to, travel, lodging and a per diem charge for FRANCHISOR and/or its representative.
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- When FRANCHISOR's representative(s) arrives at FRANCHISEE's location, the length of time he or she stays at location is strictly within the discretion of the FRANCHISOR.
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- If the location is not ready, as described in the Confidential Operations Manual, when FRANCHISOR's representative(s) arrive, FRANCHISOR reserves right to recall its representative(s) until FRANCHISOR is satisfied that the location is ready. If this is done, then FRANCHISEE agrees to pay for the costs of sending FRANCHISOR's representative(s) back to the location to help FRANCHISEE open. If flight schedules have to be changed because Franchise Location is not ready, FRANCHISEE agrees to pay any costs related to changing tickets, including ticket price variations. If the location is not ready when FRANCHISOR's representative(s) arrive, and for that reason they cannot perform the functions for which they were sent, as an alternative to recalling them, FRANCHISEE agrees to pay the added lodging and subsistence costs of the representative(s) for each day they are prevented from completing the functions for which they were sent. The decision to recall or have its representatives remain on site or extend their stay is strictly within the FRANCHISOR's discretion.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the expenses of Apricot Lane's representatives during the opening of the franchised business. Specifically, Apricot Lane will furnish up to two representatives to the franchisee's premises to assist with the opening. However, the franchisee must cover the costs associated with this assistance. These costs are based on Apricot Lane's current rates, as detailed in the Confidential Operations Manual, and include expenses such as travel, lodging, and a per diem charge.
If Apricot Lane deems it necessary to provide additional assistance beyond the initial support, the franchisee is also responsible for reimbursing Apricot Lane for these extra expenses. These additional costs are also calculated using the rates published in the Confidential Operations Manual and encompass travel, lodging, and a per diem charge for the representatives.
Furthermore, the FDD outlines scenarios where the franchisee may incur additional costs related to the representatives' visit. If the franchise location is not ready when the representatives arrive, Apricot Lane reserves the right to recall them. In this case, the franchisee is responsible for paying the costs of sending the representatives back to the location once it is ready. The franchisee also agrees to cover any costs associated with changing flight schedules due to the location not being prepared. As an alternative to recalling the representatives, Apricot Lane may choose to have them remain on-site, in which case the franchisee is responsible for the added lodging and subsistence costs for each day they are unable to perform their duties due to the location's unpreparedness. The decision to recall the representatives or have them remain on-site is at the sole discretion of Apricot Lane.