What is the administrative fee for an individual Aplus franchisee to transfer to a business entity?

According to Aplus's 2024 Franchise Disclosure Document, an individual franchisee can transfer their interest in the Franchise Agreement to a business entity within the first 12 months of the agreement. This transfer is allowed for the convenience of operation. To do so, the franchisee must use Aplus's standard assignment and assumption agreement form.

Several conditions must be met for the transfer to be valid. First, the business entity must be formed solely to continue the franchisee's development rights and obligations. Second, the franchisee must provide Aplus with copies of the business entity's formation and governing documents, along with a certificate of good standing from the entity's jurisdiction. A general release in favor of Aplus, in the form that Aplus requires, must also be signed.

Finally, the franchisee must pay Aplus a $1,500 administrative fee to complete the transfer. This fee covers Aplus's administrative costs associated with processing the transfer and ensuring that all necessary documentation is in order. This type of administrative fee is common in franchising to compensate the franchisor for their time and expenses related to the transfer process.