What was the total amount of advertising fees collected by Apricot Lane in 2023?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
holders' Equity | | 8 | 1,674,622 | . $ | 1,895,292 |
| 2024 | 2023 | |
|---|---|---|
| Revenues | ||
| Royalties | $ 1,940,979 | $ 2,060,277 |
| Franchise fees | 732,500 | 994,000 |
| Advertising fees | 357,906 | 379,936 |
| Sponsorship | 40,350 | 11,100 |
| Total Revenues | 3,071,735 | 3,445,313 |
| Operating expenses | ||
| General and administrative | 2,381,195 | 2,789,406 |
| Franchise advertising | 429,599 | 551,000 |
| Depreciation | 51,794 | 33,509 |
| Total Operating Expenses | ||
| 2,862,588 | 3,373,915 | |
| Income (Loss) from Operations | 209,147 | 71,398 |
| Other Income/(Expense) | ||
| Other income | 37,453 | 14,942 |
| Other expense | - | (511) |
| Interest expense | (30,120) | (22,567) |
| Total Other Income/(Expense) | ||
| 7,333 | (8,136) | |
| Income (Loss) before provisions for income taxes | 216,480 | 63,262 |
| Income Tax Expense | ||
| Provision for income taxes | ||
| 1,984 | 59,242 | |
| Net Income (Loss) | $ 214,496 | $ 4,020 |
|
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the total advertising fees collected in 2023 amounted to $379,936. This figure represents the funds pooled from franchisees to support marketing and promotional activities for the Apricot Lane brand.
For a prospective franchisee, understanding the advertising fees is crucial as it directly impacts their contribution to the brand's marketing efforts. These fees are typically used for various advertising mediums, including digital campaigns, mass media, and promotional materials. It is important to note that while these funds are meant to enhance brand visibility and attract customers, the franchisor has discretion in allocating these resources.
The FDD also indicates that the franchisor maintains these advertising funds in a separate account and can use them to reimburse themselves and their affiliates for expenses related to managing the fund, including salaries, administrative costs, and travel expenses. While the fund is not a trust and the franchisor does not owe fiduciary obligations, transparency in how these funds are managed and allocated is something a potential franchisee should investigate further during their due diligence.
Franchisees should also be aware that the amount spent on advertising in a given year may not directly correlate with the amount collected, as the franchisor can carry over funds from previous years or borrow to cover deficits. Therefore, it is advisable for potential franchisees to inquire about the franchisor's advertising strategy, the allocation of advertising funds, and the overall effectiveness of the marketing campaigns in driving sales and brand awareness for Apricot Lane.