What is the option fee 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 $15,000. This fee is payable upon signing the Location Option Agreement, and it applies if you choose to purchase an option. Item 12 of the FDD provides further details regarding this option.
In the context of franchising, an option fee typically grants the prospective franchisee the exclusive right to secure a specific location for a defined period. This allows the franchisee time to conduct due diligence, finalize financing, and complete other necessary preparations without the risk of losing the location to another potential franchisee.
For a prospective Apricot Lane franchisee, understanding the terms and conditions outlined in Item 12 is crucial before paying the $15,000 option fee. This includes knowing the duration of the option, the conditions under which the fee is refundable (if any), and the process for converting the option into a finalized franchise agreement. It is important to note that this fee is separate from other fees such as the initial franchise fee or ongoing royalty payments.