Can the Apricot Lane franchisee remit fees directly to the Provider of the E-Commerce Platform?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that Franchisor, for and on behalf of Franchisee, may at its option (but shall not be required to) enter into the Provider's Contracts for Franchisee's E-Commerce Platform and to be the administrator thereof and have complete and unrestricted access thereto. In connection with such Franchisor-arranged E-Commerce Platform: (i) Franchisee shall remit to Franchisor (or, at Franchisor's direction, remit directly to the Provider) all fees, costs, expenses and reimbursements required to be paid to the Provider; and (ii) Franchisee shall comply with all terms and conditions of the Provider's Contracts and all mandatory policies issued by Franchisor or Provider in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee may be directed to remit fees directly to the Provider of the E-Commerce Platform. Specifically, the document states that the franchisee shall remit to Apricot Lane (or, at Apricot Lane's direction, remit directly to the Provider) all fees, costs, expenses, and reimbursements required to be paid to the Provider. This indicates that while the standard procedure might involve payments going through Apricot Lane, there is a possibility that franchisees will be instructed to pay the Provider directly.
This arrangement gives Apricot Lane flexibility in managing the financial transactions related to the E-Commerce Platform. It also implies that Apricot Lane has the authority to negotiate and manage the contracts with the Provider on behalf of the franchisee. The franchisee is obligated to comply with the terms and conditions of the Provider's Contracts and all mandatory policies issued by Apricot Lane or the Provider in connection with the E-Commerce Platform.
For a prospective Apricot Lane franchisee, this means they need to be prepared to handle payments either through Apricot Lane or directly to the E-Commerce Platform Provider, depending on the franchisor's instructions. It is important to understand the terms of the Provider's Contracts and any policies related to payments, as the franchisee is responsible for compliance. Additionally, the franchisee must maintain any required insurance policies related to the E-Commerce Platform and indemnify Apricot Lane for any liabilities incurred in connection with it.
It is also important to note that Apricot Lane can change the E-Commerce Platform, including substituting providers and using different technology, to maintain the competitiveness of Specialty Stores. Franchisees agree to discontinue use of any E-Commerce Platform that Apricot Lane no longer authorizes and will only use the then-current authorized E-Commerce Platform, notwithstanding that changes may result in costs and expenses to Franchisee.