What must an Apricot Lane franchisee submit to the franchisor along with each royalty payment?
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, royalty payments are made on a semi-monthly schedule. Specifically, royalties are due on the 20th of each month for the period covering the 1st through the 15th of the month, and on the 5th of each month for the period covering the 16th through the last day of the month.
Along with each royalty payment, the Apricot Lane franchisee must submit a statement of gross revenues for the preceding semi-monthly period. This statement must be accurate, signed by the franchisee, and on a form approved by Apricot Lane.
In addition to the gross revenue statement, the franchisee must also include their calculation of the royalty payment based on the reported gross revenues, as well as a sales report for the corresponding semi-monthly period. Franchisees must also make available all original books and records that Apricot Lane may deem necessary to verify the franchisee's gross revenues.