When are late fees assessed for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
OTHER FEES**
| Type of Fee | Amount | Due Date | Remarks* |
|---|---|---|---|
| Royalty Payments | 5.5% of Gross Revenues(2) | Payable semi-monthly by the 20th and the 5th of each month. | Based on Gross Revenues for the preceding period of the 1st through the 15th for payments on the 20th, and the 16th through the last day of the month for payments on the 5th. |
| Option fee | $15,000 | Payable on signing the Location Option Agreement | Payable if you purchase an option (See Item 12) |
| Advertising and Development Fund (3) | 1% of your Gross Revenues | Payable to the Advertising and Development Fund in same manner as Royalty Fee listed above. | You also have to spend at least 2% of gross revenues on local advertising. See Item 11 for a detailed discussion about the Advertising and Development Fund. |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, late fees are assessed if royalty or other payments or reports are submitted late. The late fee is $5 per day for each day the payment or report is late. These fees are payable on demand. To avoid late fees, Apricot Lane franchisees must submit all payments and reports on time, including semi-monthly statements of gross revenues, which are due with royalty payments.
Apricot Lane requires franchisees to pay a royalty fee of 5.5% of gross revenues. These royalty payments are due semi-monthly, specifically on the 20th and the 5th of each month. The payment due on the 20th covers gross revenues from the 1st through the 15th of the month, while the payment due on the 5th covers revenues from the 16th through the last day of the month.
In addition to late fees, Apricot Lane may also impose a finance charge on late payments. This charge is the lower of 18% or the highest legal rate for open account business credit, accrued from the due date. However, imposing a finance charge does not excuse the franchisee's late payment or commit Apricot Lane to extend credit to the franchisee.