Are the gross revenues reported by Apricot Lane franchisees audited?

According to Apricot Lane's 2025 Franchise Disclosure Document, the gross revenues reported by franchisees are not audited. The FDD clarifies that the gross revenues figures presented in Item 19 are derived from unaudited financial reports submitted by franchisees. These reports are used by Apricot Lane to compute royalties, and the gross revenues definition used is identical to the one in Item 6.

This means that the financial performance data presented by Apricot Lane is based on self-reported information from franchisees, without independent verification. A prospective franchisee should be aware that these figures have not been checked for accuracy by an external auditor. While this is not uncommon in the franchise industry, it does place a greater burden on the potential franchisee to conduct their own due diligence and verify the financial claims made.

Given that the gross revenues are unaudited, it is crucial for potential Apricot Lane franchisees to perform thorough due diligence. This includes carefully reviewing the financial performance representations, speaking with current and former franchisees, and potentially consulting with a financial advisor to assess the viability of the franchise opportunity. Requesting the written substantiation for the financial performance representation, as mentioned in the FDD, is also advisable.