What is deferred for Apricot Lane franchisees in Maryland based on the franchisor's financial condition?

According to Apricot Lane's 2025 Franchise Disclosure Document, due to the franchisor's financial condition, the Maryland Securities Commissioner requires a financial assurance. As a result, all initial fees and payments owed by Apricot Lane franchisees in Maryland are deferred. This deferral lasts until Apricot Lane completes its pre-opening obligations as outlined in the franchise agreement.

This requirement means that new Apricot Lane franchisees in Maryland will not have to pay the initial franchise fees or any other payments until Apricot Lane has fulfilled its responsibilities related to opening the franchise location. These pre-opening obligations typically include site selection assistance, training, and providing the necessary manuals and resources to start the business.

This deferral of fees provides a significant benefit to franchisees in Maryland, reducing their upfront financial burden and risk. It ensures that Apricot Lane is incentivized to provide the necessary support and fulfill its obligations before receiving payment. Prospective franchisees should carefully review the franchise agreement to understand the specific pre-opening obligations that must be completed before the fees become due.