Does Apricot Lane charge interest on past due receivables from franchisees?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
ts in exchange for goods or services to be provided to FRANCHISEE by a vendor, supplier or customer will, for the purpose of determining Gross Revenues, be valued at the full retail value of the goods and/or services so provided to FRANCHISEE.
D. Finance Charges and Late Fees
All Royalty payments, advertising contributions, and all other amounts due from FRANCHISEE to FRANCHISOR shall bear interest after the due date at eighteen percent (18%) per annum or the highest applicable legal rate, whichever is lower, for open account business credit. FRANCHISEE shall be required to pay a late fee of Five Dollars ($5.00) per day for each day that any royalties or other amounts due under this Agreement are not paid after the due date and for each day that any statement of Gross Revenue, financial statement or other report by FRANCHISEE required by this Agreement is not submitted after the due date. The provisions of this paragraph shall not constitute agreement by FRANCHISOR to accept such payments or statements after same are due or a commitment by FRANCHISOR to extend credit to, or otherwise finance FRANCHISEE's operation o
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the company does charge interest on past due amounts from franchisees. Specifically, all royalty payments, advertising contributions, and other amounts due to Apricot Lane from a franchisee will bear interest after the due date.
The interest rate is set at 18% per annum, or the highest applicable legal rate for open account business credit, whichever is lower. In addition to interest, Apricot Lane franchisees will be required to pay a late fee of $5.00 per day for each day that any royalties or other amounts due under the agreement are not paid after the due date. The same $5.00 daily late fee applies for each day that any statement of Gross Revenue, financial statement, or other report required by the agreement is not submitted after the due date.
The FDD clarifies that these finance charge and late fee provisions do not obligate Apricot Lane to accept late payments or statements, nor do they constitute a commitment to extend credit to the franchisee. The document emphasizes that failure to pay amounts or submit gross revenue statements when due constitutes a material default, which may lead to termination of the franchise agreement.