Under what condition will the Option Fee be retained by Apricot Lane?

According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisor will retain the Option Fee if the franchisee does not exercise their option to develop a Specialty Store at the Option Location within twelve calendar months after the date of the Location Option Agreement. In this case, the option will automatically expire, and Apricot Lane will keep the Option Fee, considering it fully earned for holding the Option Location off the market. The Option Fee is $15,000.

This means that a prospective Apricot Lane franchisee who pays the Option Fee to secure a location has a limited time frame to decide whether to proceed with developing a store at that location. If they delay beyond the 12-month period, they risk losing the entire Option Fee, which is a significant amount. Only $5,000 of the $15,000 Option Fee is credited towards the initial franchise fee if the franchisee exercises the option before it expires.

This condition incentivizes franchisees to make timely decisions about location development. It also allows Apricot Lane to avoid holding potential locations indefinitely while a franchisee considers their options. Franchisees should carefully evaluate their readiness and resources before paying the Option Fee, as failing to act within the specified timeframe results in a financial loss.