What is the threshold for understating Gross Revenues that would cause Apricot Lane to terminate the franchise agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Understates Gross Revenues two (2) or more times during the term of this Agreement or by more than two percent (2%) on any one occasion;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisor can terminate the franchise agreement if the franchisee understates gross revenues in certain ways. Specifically, Apricot Lane may terminate the agreement if a franchisee understates Gross Revenues two or more times during the term of the agreement.
Additionally, Apricot Lane can terminate the agreement if the understatement of Gross Revenues is by more than two percent on any single occasion. This means that even a single instance of significantly underreporting revenue (more than 2%) can be grounds for termination.
It is important for a prospective Apricot Lane franchisee to understand these terms, as consistently and accurately reporting Gross Revenues is critical to maintaining the franchise agreement. Franchisees should ensure they have systems in place to track and report all revenue accurately to avoid potential issues with the franchisor.