Under what circumstance is the Apricot Lane transfer fee not applicable?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks* |
|---|---|---|---|
| Transfer Fee | $30,000 | Prior to transfer of the franchise or a controlling interest in it | Not applicable to assignment of your interest to a corporation majority- owned by you |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the transfer fee is not applicable under a specific circumstance. The standard transfer fee for an Apricot Lane franchise is $30,000, which is due prior to the transfer of the franchise or a controlling interest in it. However, this fee is waived if the assignment of interest is to a corporation majority-owned by the franchisee.
This means that if an Apricot Lane franchisee decides to transfer their franchise to a corporation they control (i.e., they own more than 50% of the corporation), they will not have to pay the $30,000 transfer fee. This provision can be beneficial for franchisees who may want to incorporate their business for legal or tax reasons and transfer the franchise ownership to the corporation.
It is important for prospective Apricot Lane franchisees to understand the conditions under which the transfer fee is waived, as it can represent a significant cost saving. Franchisees should consult with a legal and financial advisor to determine the best course of action for their specific circumstances when considering a transfer of their franchise.