What administrative fee must an Aplus franchisee pay for owners to transfer ownership interests within the business entity?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
n a general release in favor of Franchisor and in the form Franchisor requires; and (d) you pay to Franchisor a $1,500 administrative fee.
- 8.3. Transfer Among Owners; Transfer of Non-Controlling Interest. If you are a Business Entity, your Owners may transfer their ownership interests in the Business Entity among each other, and may transfer up to a Non-Controlling Interest in the Business Entity to one or more third parties, if: (a) you have provided to Franchisor advance notice of the transfer; (b) Attachment C to this Agreement has been amended to reflect the new ownership; (c) each new Owner has signed a Guaranty and Personal Undertaking in the form of Attachment D; (d) each previous and/or new Owner has sign
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if the franchisee is a business entity, the owners may transfer their ownership interests among each other or transfer up to a Non-Controlling Interest to third parties. To do so, the franchisee must provide advance notice to Aplus, amend Attachment C of the agreement to reflect the new ownership, ensure each new owner signs a Guaranty and Personal Undertaking (Attachment D), have each previous and/or new owner sign a general release in favor of Aplus, and pay Aplus an administrative fee of $2,500.
This fee covers Aplus's administrative costs associated with processing the transfer and updating their records. A "Non-Controlling Interest" is defined as any interest less than 51% of the corporation, limited liability company, or partnership.
It is important to note that this fee applies specifically to transfers among existing owners or transfers of a non-controlling interest to a third party. Other types of transfers, such as a transfer of a controlling interest or a transfer of the franchise agreement itself, may be subject to different fees and conditions as outlined in other sections of the Aplus Franchise Agreement.