What happens if an Apricot Lane franchisee's bank does not honor an EFT?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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. FRANCHISOR nonetheless reserves the right to require FRANCHISEE to pay any Royalty fee, Fund contribution, or other amount due to FRANCHISOR by means other than EFT (e.g., by check) whenever FRANCHISOR deems appropriate, and FRANCHISEE agrees to comply with such payment instructions.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, if a franchisee's bank does not honor an electronic funds transfer (EFT), the franchisee is responsible for immediately paying the amount due, along with any service charges. This means the franchisee must have a contingency plan to cover any failed EFT payments to avoid penalties or default.
Apricot Lane retains the right to demand payment through other methods, such as a check, if they deem it necessary. This provides Apricot Lane with flexibility in securing payments and reduces their risk of non-payment. The franchisee must comply with these alternative payment instructions.
Failure to have an EFT honored could lead to additional financial burdens for the franchisee, such as service charges. More significantly, it could allow Apricot Lane to pursue further action if non-payment constitutes a material default under the franchise agreement. Franchisees should ensure they maintain sufficient funds in their accounts to avoid EFT failures and potential penalties.