What does the Apricot Lane FDD say about the semi-monthly payment schedule for royalties?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalties shall be paid on or before the twentieth (20th) of each month for the preceding period of the first (1st) through the fifteenth (15th) and the fifth (5th) of each month for the preceding period of the sixteenth (16th) through the last day of the month. With each payment, FRANCHISEE will submit to FRANCHISOR on a form approved by FRANCHISOR, a correct statement, signed by FRANCHISEE, of FRANCHISEE's Gross Revenues (defined in Section 12.C below) for the preceding semi-monthly period. Each semi-monthly statement of Gross Revenues shall be accompanied by FRANCHISEE's calculation of the Royalty payment based on the Gross Revenues reported in the statement so submitted and a sales report for the preceding semi-monthly period. FRANCHISEE shall make available to FRANCHISOR all original books and records that FRANCHISOR may deem necessary to ascertain FRANCHISEE's Gross Revenues for reasonable inspections at reasonable times.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, royalties are to be paid semi-monthly. Specifically, the franchisee must pay royalties by the 20th of each month for gross revenues earned from the 1st through the 15th of that month. Additionally, royalties are due by the 5th of each month for the preceding period of the 16th through the last day of the month.
With each royalty payment, the Apricot Lane franchisee must submit a statement of gross revenues for the corresponding semi-monthly period. This statement must be accurate, signed by the franchisee, and on a form approved by Apricot Lane. The franchisee must also include their calculation of the royalty payment based on the reported gross revenues, along with a sales report for the same period.
Apricot Lane requires franchisees to maintain and make available all original books and records necessary to ascertain gross revenues. These records are subject to inspection by Apricot Lane at reasonable times, allowing the franchisor to verify the accuracy of reported revenues and royalty payments. This level of detail and scrutiny is fairly standard in franchise agreements to ensure transparency and compliance.