Where in the Apricot Lane franchise agreement can I find information about the initial franchise fee?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
anchised Business under the System at that location as provided in this Agreement.
C. Initial Franchise Fee
In consideration of the franchise granted herein, FRANCHISEE shall pay to FRANCHISOR an initial franchise fee of . This initial franchise fee shall be paid in full on execution of this Agreement unless FRANCHISEE has an Open License.
If FRANCHISEE has an Open License, the initial franchise fee shall be paid in two installments. The first installment of Five Thousand Dollars ($5,000) is due and payable on execution of this Agreement and the balance is due and payable in full upon request for a lease by FRANCHISEE after the negotiation of a letter of intent for the location of the Franchised Business with the lessor. Failure to pay the balance of the initial franchise fee when due shall be grounds for termination of this Agreement.
The initial franchise fee and any portion thereof shall be deemed fully earned when due and payable as provided above and shall not be refundable under any circumstances except as expressly provided in Section 6.C of this Agreement.
D. Initial Franchise Fee for a Second or Additional Franchise Purchased
The franchise fee for a second franchise purchased by an existing franchisee is Twenty Thousand Dollars ($20,000), payable on the same terms and conditions as provided in Section 1.C above. FRANCHISEE will sign the Franchise Agreement currently in use for that second location and the "Second or Additional St
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Section 1.C of the franchise agreement details the initial franchise fee. The initial franchise fee is due upon execution of the agreement. However, if the franchisee has an "Open License" because a specific location hasn't been identified yet, the fee is paid in two installments. The first installment of $5,000 is due upon signing the agreement, and the remaining balance is due when the franchisee requests a lease after negotiating a letter of intent for the store location with the lessor. Failure to pay the balance when due can result in termination of the agreement.
The FDD also states that the initial franchise fee is considered fully earned when it is due and payable and is non-refundable, except as expressly provided in Section 6.C of the agreement.
Additionally, Section 1.D discusses the initial franchise fee for a second or additional Apricot Lane franchise purchased by an existing franchisee. The franchise fee for a second franchise is $20,000, payable under the same terms and conditions as the initial fee described in Section 1.C. The "Second or Additional Store Fee" provided for in that second store Franchise Agreement will apply towards any third store location purchased.
Note 1 also mentions the initial franchise fee for 2023 and 2022 was $39,500, and the franchise fee for additional stores was $15,000.