Does Country Visions ensure that all Apricot Lane franchisees will benefit directly from advertising?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
allocation of such programs. COUNTRY VISIONS does not ensure that any particular franchisee will benefit directly or proportionately from the placement of and advertising. The fees paid to the Fund are used to meet all costs of creating, producing, maintaining, administering, directing, approving and conducting advertising, marketing and promotional activities and materials, including, without limitation the cost of preparing and producing mass media, magazine, online and newspaper, digital advertising and campaigns; the cost of direct mail and outdoor billboard advertising; the cost of public relations activities and advertising agencies; the cost of developing and maintaining an Internet Website; the cost of personnel or other departmental costs for marketing and creative services and/or advertising that FRANCHISOR internally administers or prepares; point of purchased and promotional materials and supplies, digital art, marketing and dissemination support mechanisms and the employment of outside agencies. All sums paid by you to the Fund will be maintained in a separate account from the other funds of COUNTRY VISIONS and will not be used to defray any of our general operating expenses. However, the Fund may reimburse us and our affiliates for the reasonable salaries and benefits of personnel who manage and administer the Fund or otherwise provide assistance or services to the Fund, the Fund's administrative costs, travel expenses while they are on Fund business, meeting costs, overhead relating to the Fund business and other expenses that we may incur in administering or directing the Fund and its programs including conducting market research, preparing marketing and advertising materials, and collecting and accounting for assessment for the Fund. We may incorporate the Fund or operate it through
a separate entity whenever we deem it appropriate. The successor entity will have all of the rights and duties of COUNTRY VISIONS' with respect to the Fund. The Fund is not a trust and we do not owe you fiduciary obligations because of our maintenance, direction or administration of the Fund or any other reason. The Fund may spend in any fiscal year more or less than the total Fund contributions in that year, borrow from us or others (paying reasonable interest) to cover deficits, or invest any surplus, for future use. We will use all interest earned on Fund contributions to pay costs before using the Fund's other assets.
In most cases, COUNTRY VISIONS provides the advertising materials it develops to you and you utilize them at your discretion.
COUNTRY VISIONS will prepare an annual accounting of the operation of the Fund and this report will be made available to you upon request. There is no requirement for COUNTRY VISIONS to audit the Fund or provide you with an audited report. If COUNTRY VISIONS elects to have such an audit performed, the cost of doing so can be charged against the Fund.
During our most recent fiscal year ended December 31, 2024 the Fund was allocated as follows: 72% on production and creation of advertising materials, including maintaining, administering, directing, creating, preparing and approving advertising and promotions, market research, and collecting and accounting for assessments for the Fund, including salaries and overhead expenses and the cost of activities reasonably related to these functions, 18% on media placement for includes a messaging platform, brand awareness advertising and Google Maps store locator, and 10% on our administrative expenses primarily to cover the expenses related to the national gift card program.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–30)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Country Visions does not guarantee that individual franchisees will directly or proportionately benefit from advertising initiatives. Apricot Lane has established a Marketing, Advertising and Development Fund where franchisees contribute 1% of their gross revenues. Company-owned stores also contribute to this fund. Country Visions has sole discretion over advertising programs. The fees paid into the fund are used to cover the costs of various marketing and advertising activities. These activities include mass media campaigns, online and digital advertising, direct mail, billboard advertising, public relations, website maintenance, and marketing personnel costs.
The funds are kept in a separate account from Country Visions' general operating funds but may be used to reimburse Country Visions and its affiliates for reasonable expenses related to managing the fund. These expenses include salaries, administrative costs, travel, meeting costs, and overhead. Country Visions will provide an annual accounting of the fund's operation, available to franchisees upon request, but is not required to provide an audited report unless they elect to do so, in which case the audit cost can be charged to the fund.
During the fiscal year ending December 31, 2024, the fund allocation was as follows: 72% was spent on the production and creation of advertising materials, including maintaining, administering, directing, creating, preparing, and approving advertising and promotions, market research, and collecting and accounting for assessments for the Fund, including salaries and overhead expenses and the cost of activities reasonably related to these functions, 18% on media placement for includes a messaging platform, brand awareness advertising and Google Maps store locator, and 10% on administrative expenses primarily to cover the expenses related to the national gift card program. Any unspent advertising fees are rolled over to the subsequent year's fund. The fund is not used for advertising that primarily solicits the sale of franchises.