When must an Apricot Lane franchisee execute documents to pay by electronic funds transfer?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (3) During corporate training, you must execute all documents necessary to pay by electronic funds transfer ("EFT") all amounts due under your Franchise Agreement with us (including, the Royalty and Fund contributions). You must maintain sufficient funds in the appropriate accounts for the withdrawals. If you have not provided a statement of Gross Revenues within the time period required under your Franchise Agreement with us, we may process an EFT and debit your designated bank account based on information we obtain or the most recent statement of Gross Revenues you have provided. If we
determine the Gross Revenues have been understated or amounts due to us have been underpaid, we may debit your designated bank account for the overdue amount, plus interest. We will credit any overpayment to your designated bank account promptly following a determination that a credit is due. Should your bank not honor any EFT for any reason, you are responsible for and must pay to us immediately on demand the payment and any service charge. We reserve the right to require you to pay any Royalty fee, Fund contribution, or other amount due to us by means other than EFT (e.g., by check) whenever we deem appropriate, and you must comply with our payment instructions.
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees are required to execute all necessary documents for electronic funds transfer (EFT) payments during their corporate training. This EFT arrangement is used for all payments due under the Franchise Agreement, including Royalty and Fund contributions.
Apricot Lane franchisees must ensure they maintain sufficient funds in their designated accounts to cover these withdrawals. If a franchisee fails to provide a statement of Gross Revenues within the required timeframe, Apricot Lane has the right to process an EFT debit based on either information they obtain independently or the most recent Gross Revenues statement provided by the franchisee.
Furthermore, if Apricot Lane determines that Gross Revenues have been understated or amounts due have been underpaid, they may debit the franchisee's bank account for the overdue amount, along with interest. Conversely, any overpayment will be promptly credited back to the franchisee's account. If an EFT is not honored by the franchisee's bank for any reason, the franchisee is responsible for the payment and any associated service charges, payable immediately upon demand. Apricot Lane also reserves the right to require payment by other means, such as check, if deemed necessary.