How were the gross revenues reported by Apricot Lane franchisees used?

According to Apricot Lane's 2025 Franchise Disclosure Document, the gross revenues reported by franchisees are used to compute royalties. The FDD specifies that the gross revenues definition used for these reports is identical to the one detailed in Item 6 of the document. This means that Apricot Lane uses the reported revenues to calculate the royalty fees that franchisees are obligated to pay.

The financial performance representation in Item 19 includes a table of gross revenues from 88 franchised Apricot Lane stores that were open and operating for the entire 12-month period. These figures are based on unaudited financial reports submitted by the franchisees. It is important to note that these gross revenue figures do not reflect the costs of sales, operating expenses, or other costs that franchisees must deduct to determine their net income or profit.

Prospective franchisees should be aware that the financial performance of existing stores can vary significantly, and past performance is not necessarily indicative of future results. The FDD explicitly states that there is no assurance that a new franchisee will achieve similar sales figures. It is crucial for potential franchisees to conduct their own independent investigation of the costs and expenses associated with operating an Apricot Lane franchise to accurately assess their potential profitability.