As of December 31, what is the status of Apricot Lane's accounts receivable in California?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
- ACCOUNTS RECEIVABLE
Accounts Receivable consists of the following at December 31:
| 2024 | 2023 | |
|---|---|---|
| Franchise Fees Receivable | $ 222,000 | $ 207,000 |
| Royalty & Advertising Fees Receivable | 117,073 | 140,764 |
| Reimbursable Franchise Cost Receivable | 18,076 | 24,017 |
| 357,149 | 371,781 | |
| Allowance for Doubtful |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
The 2025 Apricot Lane FDD provides information on the company's accounts receivable as of December 31, 2024, but it does not break down the accounts receivable by state. The FDD does show a total of $222,000 in franchise fees receivable, $117,073 in royalty and advertising fees receivable, and $18,076 in reimbursable franchise cost receivable. After deducting an allowance for doubtful accounts of $45,004, the net accounts receivable is $312,145.
While the FDD details the overall accounts receivable, it lacks specific information regarding the portion attributable to franchisees located in California. This makes it impossible to determine the precise financial exposure Apricot Lane has in outstanding payments from California-based franchises.
A prospective franchisee should inquire directly with Apricot Lane about the concentration of accounts receivable within specific states like California. Understanding this geographic distribution of receivables would provide a clearer picture of potential regional risks and the financial stability of the franchise system within California.