What administrative fee must an Aplus franchisee pay to transfer their interest to a business entity?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ed under this Agreement).
- 8.2. Transfer by Individual Developer to Business Entity for Convenience. If you are an individual, you may transfer your interest in this Agreement to a Business Entity for convenience of operation within the first 12 months of this Agreement by signing Franchisor's standard form of assignment and assumption agreement if: (a) the Business Entity is formed solely for purposes of continuing your development rights and obligations; (b) you provide to Franchisor a copy of the Business Entity's formation and governing documents and a certificate of good standing from the jurisdiction under which the Business Entity was formed; (c) you sign 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, an individual franchisee may transfer their interest in the Development Agreement to a business entity within the first 12 months of the agreement under specific conditions. If these conditions are met, the franchisee must pay Aplus an administrative fee of $1,500.
The conditions include that the business entity is formed solely to continue the franchisee's development rights and obligations. The franchisee must also provide Aplus with copies of the business entity's formation and governing documents, along with a certificate of good standing. Additionally, the franchisee must sign a general release in favor of Aplus, using the form that Aplus requires.
If the franchisee is a business entity, the owners may transfer their ownership interests among each other or transfer a non-controlling interest to a third party, provided they give Aplus advance notice and amend Attachment C to reflect the new ownership. Each new owner must sign a Guaranty and Personal Undertaking, and all previous and new owners must sign a general release. In this scenario, the administrative fee is $2,500.