What is the Apricot Lane franchisee required to maintain in their accounts for EFT withdrawals?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
, FRANCHISEE acknowledges that the failure to pay any amounts or submit statements of Gross Revenue when due constitute a material default for which FRANCHISOR may (but is not obligated to) terminate this Agreement, as provided in Section 19 hereof.
E. Electronic Funds Transfer
Notwithstanding Section 12.B above, during FRANCHISEE's participation in the training program designated in Section 6.A above, FRANCHISEE agrees to execute all documents necessary to pay by electronic funds transfer ("EFT") all amounts due under this Agreement (including, without limitation, the Royalty, Fund contributions). FRANCHISEE agrees to maintain sufficient funds in the appropriate accounts for such withdrawals. If FRANCHISEE has not provided a statement of Gross Revenues within the time period required by Section 12.B of this Agreement, FRANCHISEE authorizes FRANCHISOR to process an EFT and debit FRANCHISEE's designated bank account on the basis of the information we obtain pursuant to Section 13.C or the most recent statement of Gross Revenues FRANCHISEE has provided. If at any time FRANCHISOR determines that Gross Revenues have been understated or amounts due FRANCHISOR have been underpaid, FRANCHISEE authorizes FRANCHISOR to debit FRANCHISEE's designated bank account for the overdue amount, plus interest, as stated above. FRANCHISOR will credit any overpayment to your designated bank account promptly following
a determination that such a credit is due. Should FRANCHISEE's bank not honor any EFT for any reason, FRANCHISEE agrees that it shall be responsible for and shall pay to FRANCHISOR immediately on demand the payment and any service charge.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, franchisees must execute all necessary documents to pay all amounts due under the Franchise Agreement via electronic funds transfer (EFT) during their participation in the training program. This includes, but is not limited to, royalty and fund contributions.
The FDD stipulates that Apricot Lane franchisees must maintain sufficient funds in their designated accounts to cover these EFT withdrawals. If a franchisee fails to provide a statement of Gross Revenues within the required timeframe, Apricot Lane is authorized to process an EFT debit based on information obtained through Section 13.C 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, the franchisee authorizes Apricot Lane to debit their designated bank account for the overdue amount, along with interest. Conversely, Apricot Lane will promptly credit any overpayment to the franchisee's designated bank account upon determining that a credit is due. Should a franchisee's bank not honor any EFT for any reason, the franchisee is responsible for immediately paying the amount due, along with any service charges, to Apricot Lane.