Does Apricot Lane have the discretion to apply payments from the franchisee to past due debts?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any designation by FRANCHISEE, FRANCHISOR shall have the sole discretion to apply any payments by FRANCHISEE to any past due indebtedness of FRANCHISEE for royalties, advertising contributions, purchases from FRANCHISOR, interest or any other indebtedness, in such amounts and in such order as FRANCHISOR shall determine.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Apricot Lane has the authority to allocate a franchisee's payments towards outstanding debts. Specifically, Apricot Lane can apply payments to cover past due royalties, advertising contributions, purchases from Apricot Lane, interest, or any other form of debt.
This discretion allows Apricot Lane to manage franchisee accounts and prioritize the collection of overdue amounts. The allocation can be done in amounts and order that Apricot Lane determines.
For a prospective Apricot Lane franchisee, this means that if you have multiple outstanding obligations to the franchisor, Apricot Lane has the power to decide which debts are settled first, regardless of any specific designations you might make when submitting a payment. This could impact how a franchisee manages their finances and should be considered when budgeting and planning for the business.