When is the liquidated damages fee due to Apricot Lane?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks* |
|---|---|---|---|
| Liquidated Damages | Varies based on unexpired term of your franchise agreement. Maximum is amount equal to prior 36 months of Royalty payments. | Upon your premature termination or discontinuance of operation as our franchisee. | Only payable if you terminate or discontinue operation before the term expires as provided in Section 20.L of the Franchise Agreement |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the liquidated damages fee is due upon your premature termination or discontinuance of operation as an Apricot Lane franchisee. This fee is only payable if you terminate or discontinue operation before the term expires, as provided in Section 20.L of the Franchise Agreement.
The amount of the liquidated damages varies based on the unexpired term of your franchise agreement. The maximum amount you could owe is equal to the prior 36 months of royalty payments.
This means that if a franchisee decides to terminate their agreement early or ceases operations before the end of the agreed-upon term, Apricot Lane can require them to pay a fee to cover losses incurred as a result of the early termination. The fee is capped at the equivalent of three years' worth of royalty payments, providing a defined upper limit to the financial penalty. Prospective franchisees should carefully consider the implications of this clause and fully understand the conditions under which it applies, as detailed in Section 20.L of the Franchise Agreement.