For Apricot Lane franchisees in Illinois, under what condition are initial fees and payments deferred?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
All initial fees and payments owed by franchisees shall be deferred until the franchisor completes its preopening obligations under the franchise agreement. The Illinois Attorney General's Office imposed this deferral requirement due to franchisor's financial condition.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, for franchisees in Illinois, all initial fees and payments are deferred until Apricot Lane completes its pre-opening obligations under the franchise agreement. This requirement was imposed by the Illinois Attorney General's Office due to Apricot Lane's financial condition. This deferral provides a significant benefit to franchisees in Illinois, as they are not required to pay the initial fees until Apricot Lane has fulfilled its obligations to prepare the franchisee to open their store.
This deferral of fees protects the franchisee's initial investment. Typically, franchisees pay initial fees upfront, which are non-refundable. This means that if the franchise agreement is terminated before the store opens, the franchisee may lose their initial investment. However, in Illinois, the franchisee does not have to pay the initial fees until Apricot Lane has completed its pre-opening obligations. This reduces the risk of losing their initial investment if Apricot Lane fails to fulfill its obligations.
Prospective Apricot Lane franchisees in Illinois should carefully review the franchise agreement to understand what constitutes Apricot Lane's pre-opening obligations. They should also confirm with Apricot Lane the specific steps and timeline for completing these obligations. This will help them understand when the initial fees will become due and ensure that Apricot Lane is fulfilling its responsibilities under the franchise agreement.