Is Apricot Lane required to maintain and administer the national advertising and development fund, or is it optional?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- At our option, maintain and administer the national advertising and development fund (Section 11.B of the Franchise Agreement);
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–30)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the company has the option, but is not required, to maintain and administer the national advertising and development fund. Specifically, the FDD states that Apricot Lane may, at its option, maintain and administer the national advertising and development fund.
This means that Apricot Lane franchisees cannot count on a national advertising program being in place. It is up to Apricot Lane's discretion whether or not to have such a program.
Even if Apricot Lane chooses not to maintain the national fund, franchisees are still required to spend a minimum of 2% of gross sales annually on local marketing, advertising, and promotion, in addition to other advertising expenditures. This local spending requirement ensures that franchisees are actively promoting their individual businesses, regardless of the status of the national fund.