What special fees related to construction might be imposed by centers or malls for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Some centers or malls may have special fees related to construction, such as those for installation of temporary barricades and providing a construction dumpster.
Costs for demolition and restoration of space to "plain vanilla shell" are more likely to be assessed with a regional mall, but it is possible in other circumstances.
During your lease negotiations, you should determine if the lessor intends to impose any such charges.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–17)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, some centers or malls may impose special construction-related fees on franchisees. These fees can cover expenses such as the installation of temporary barricades and the provision of a construction dumpster during the build-out phase. Additionally, costs associated with demolition and restoring the space to a "plain vanilla shell" condition are more commonly encountered in regional malls, though they can occur in other locations as well. The FDD indicates that these 'Center Construction Fees & Demolition' costs can range from $0 to $2,500.
It is important for prospective Apricot Lane franchisees to proactively investigate these potential charges during lease negotiations. The document advises franchisees to determine if the lessor intends to impose any such fees. Understanding these costs upfront is crucial for accurate budgeting and financial planning.
These fees are separate from the general construction/leasehold improvement costs, which can range from $0 to $100,000, and are paid to the lessor or general contractor. Being aware of these potential additional fees allows franchisees to negotiate more effectively and avoid unexpected expenses during the construction phase. Franchisees should consult with the franchisor and legal counsel to fully understand their obligations and rights regarding construction-related fees.