How often must the Royalty fee be paid by an Apricot Lane franchisee?
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. |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees are required to pay a royalty fee on a semi-monthly basis. This means that the royalty payment is due twice a month. The royalty fee is 5.5% of Gross Revenues. Gross Revenues include all revenue and income earned from the operation of the franchised business.
The payments are due on the 20th and the 5th of each month. The payment made on the 20th covers Gross Revenues from the 1st through the 15th of the month. The payment made on the 5th covers Gross Revenues from the 16th through the last day of the month.
Apricot Lane requires franchisees to execute documents to pay all amounts due, including the royalty fee, by electronic funds transfer (EFT). Franchisees must maintain sufficient funds in their accounts for these withdrawals. If a franchisee fails to provide a statement of Gross Revenues on time, Apricot Lane may debit the franchisee's account based on available information or the most recent statement provided. If an EFT is not honored by the bank, the franchisee is responsible for the payment and any service charges. However, Apricot Lane reserves the right to require payment by other means, such as check, if deemed necessary.