Does the cost of construction and leasehold improvements for an Apricot Lane franchise depend on the location of the Franchised Business?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
equirements.
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- The cost of construction and leasehold improvements depends upon the size and condition of the premises, the nature and extent of leasehold improvements required, the local cost of contract work, lease or landlord requirements concerning the use of union or non-union construction workers, the nature and extent of leasehold improvements required, and the location of the Franchised Business. The low end of the estimate is for remodeling retail space that has some suitable leasehold improvements in place and the high end is for unimproved retail space. Regional mall locations typically entail higher leasehold improvement costs than other locations. The range of figures above does not include the cost of construction plans designed specifically for the Franchised Business. This range takes into account negotiated landlord tenant construction allowance based on our experience to date. However, the landlord allowance can vary significantly between developers and landlords. Construction allowances can range from $0 to $100,000.
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Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–17)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the cost of construction and leasehold improvements is indeed affected by the location of the franchised business. The FDD specifies that the cost of construction and leasehold improvements depends on several factors, including the location of the Franchised Business. The estimated initial investment table shows that construction and leasehold improvements can range from $0 to $100,000.
The document highlights that regional mall locations typically entail higher leasehold improvement costs compared to other locations. This is primarily due to factors such as stricter building codes, union labor requirements, and potential fees associated with construction in these high-traffic areas. Additionally, costs for demolition and restoration of space to a "plain vanilla shell" are more likely to be assessed in regional malls, although they can occur in other circumstances as well.
For prospective Apricot Lane franchisees, this means that thorough due diligence is essential when evaluating potential locations. Understanding the specific requirements and costs associated with construction and leasehold improvements in different locations can significantly impact the overall initial investment. Franchisees should also consider negotiating landlord tenant construction allowances, which can range from $0 to $100,000, to help offset these costs. Furthermore, the FDD advises franchisees to determine if the lessor intends to impose any special construction-related fees during lease negotiations.