What was the total amount of Royalty and Advertising Fees Receivable for Apricot Lane in 2023?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
- ACCOUNTS RECEIVABLE
Accounts Receivable consists of the following at December 31:
| 2024 | 2023 | |
|---|---|---|
| Franchise Fees Receivable | $ 222,000 | $ 207,000 |
| Royalty & Advertising Fees Receivable | 117,073 | 140,764 |
| Reimbursable Franchise Cost Receivable | 18,076 | 24,017 |
| 357,149 | 371,781 | |
| Allowance for Doubtful |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the Royalty and Advertising Fees Receivable for 2023 was $140,764. This figure represents the amount of royalty and advertising fees that Apricot Lane had earned but not yet collected from its franchisees as of the end of the year. These receivables are generated from the ongoing operation of franchise locations.
It is important to note that this is a receivable amount, meaning that Apricot Lane expected to collect this money in the future. The document also lists an allowance for doubtful accounts, which represents the portion of the receivables that Apricot Lane estimates may not be collectible. For 2023, the allowance for doubtful accounts was $45,004. The net amount of accounts receivable, after deducting the allowance for doubtful accounts, was $326,777.
Prospective franchisees should understand how these figures relate to the overall financial health of Apricot Lane. A significant increase in royalty and advertising fees receivable could indicate potential issues with franchisees' ability to pay or changes in payment terms. Monitoring these trends can provide insights into the stability and performance of the franchise system.