What is the amount of the Deficiency Fee charged by Aplus, and when is it due?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
h of any |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| representation or acts or omissions of you or your employees. | |||
| Deficiency Fee | $1,500 per event of default, plus the cost of reinspection and cost of enforcing compliance | Within 3 days of demand | Applies if you are in default under your franchise agreement. |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a Deficiency Fee of $1,500 is charged per event of default, in addition to the cost of reinspection and the cost of enforcing compliance. This fee is due within 3 days of demand.
This means that if an Aplus franchisee fails to comply with the terms of the franchise agreement, Aplus can charge this fee for each instance of non-compliance. The franchisee is also responsible for covering the expenses Aplus incurs to reinspect the location and ensure the franchisee comes back into compliance.
It is important for prospective Aplus franchisees to understand what constitutes a default under the franchise agreement to avoid incurring these fees. The quick turnaround time for payment (within 3 days of demand) means franchisees need to be prepared to address any issues promptly to avoid further penalties or legal action.