How does the definition of gross revenues used in the Apricot Lane table relate to Item 6 of the FDD?

According to Apricot Lane's 2025 Franchise Disclosure Document, the gross revenues reported in Item 19's financial performance representation are calculated using the same definition as provided in Item 6. Specifically, the gross revenues figures that Apricot Lane franchisees submit are used to calculate royalties. This means that the way gross revenue is defined for royalty payments is consistent with how it's defined in the financial performance representation.

For a prospective Apricot Lane franchisee, this consistency is important because it ensures that the financial data presented in Item 19 is directly relevant to the calculation of ongoing royalty obligations. Understanding the Item 6 definition of gross revenues is therefore crucial for accurately projecting potential earnings and royalty expenses.

It is important to note that the Item 19 table includes data from 88 franchised stores that were open for the entire 12-month period. The financial performance representation figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenues or gross sales figures to obtain your net income or profit. Apricot Lane encourages prospective franchisees to conduct an independent investigation of the costs and expenses they will incur in operating their Franchised Business.