Besides the Advertising and Development Fund contribution, what other advertising expenditure is required for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
OTHER FEES**
| Type of Fee | Amount | Due Date | Remarks* |
|---|---|---|---|
| Royalty Payments | 5.5% of Gross Revenues(2) | Payable semi-monthly by the 20th and the 5th of each month. | Based on Gross Revenues for the preceding period of the 1st through the 15th for payments on the 20th, and the 16th through the last day of the month for payments on the 5th. |
| Option fee | $15,000 | Payable on signing the Location Option Agreement | Payable if you purchase an option (See Item 12) |
| Advertising and Development Fund (3) | 1% of your Gross Revenues | Payable to the Advertising and Development Fund in same manner as Royalty Fee listed above. | You also have to spend at least 2% of gross revenues on local advertising. See Item 11 for a detailed discussion about the Advertising and Development Fund. |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum of 2% of gross revenues on local advertising, in addition to the 1% contribution to the Advertising and Development Fund. This local advertising expenditure is separate from the Marketing and Advertising Coverage Area (MACA) payments, which could be up to $4,000 per year. Franchisees pay MACA expenses directly to the supplier or to COUNTRY VISIONS as invoiced.
Additionally, if an Apricot Lane franchisee chooses to use an advertising or promotions agency other than COUNTRY VISIONS, they will incur an Outside Service Fee of $1,000. This fee is payable as incurred. The MACA is further described in Item 11 of the FDD and is not a formal advertising cooperative with membership, governing body, or voting rights.
In summary, an Apricot Lane franchisee's advertising expenses include a mandatory contribution to the Advertising and Development Fund (1% of gross revenues), a required local advertising spend (at least 2% of gross revenues), potential MACA payments (up to $4,000 annually), and a possible Outside Service Fee ($1,000 if an alternative agency is used). It is important for prospective franchisees to factor in these advertising costs when evaluating the financial feasibility of an Apricot Lane franchise.