When is the option fee due for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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, the option fee is due upon signing the Location Option Agreement. The option fee is $15,000. This fee is payable if a prospective franchisee chooses to purchase an option, as detailed in Item 12 of the FDD.
In the context of franchising, an option agreement typically grants the franchisee the exclusive right to secure a specific location for their business within a defined timeframe. This allows the franchisee to conduct due diligence, finalize financing, and complete other necessary preparations without the risk of losing the location to another party. The option fee serves as consideration for this exclusive right.
For a prospective Apricot Lane franchisee, understanding the terms of the Location Option Agreement is crucial. Item 12 of the FDD, referenced in the description of the option fee, likely contains important details about the duration of the option, any conditions that must be met, and the process for converting the option into a finalized franchise agreement. It is important to note that the option fee is only payable if you purchase an option.