For the Aplus 'Approved Vendor Purchase Requirement', are purchases from Designated Specific Suppliers credited toward the requirement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
g but not limited to Sunoco LLC, a Delaware limited liability company.
- "Agreement" means this agreement entitled "Sunoco Retail LLC Franchise Agreement" and all instruments supplemental hereto or in attachment, amendment, or confirmation hereof.
- "APLUS Store" or "APLUS Franchise" shall mean an APLUS Franchised Business.
- "Approved Supplier(s)" has the meaning given to such term in Section 13.1.
- "Approved Vendor Purchase Requirement" means we may implement a buying group in which your participation will be required. In connection with such buying group, you will be required and you agree to make up to 90% of your total inventory purchases and, separately, up to 90% of your cigarette purchases, both computed monthly at cost, from Approved Suppliers or Designated Specific Suppliers. No purchase will be credited toward your Approved Vendor Purchase Requirement unless the purchase is from an Approved Supplier or Designated Specific Supplier.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, purchases from Designated Specific Suppliers do count toward the Approved Vendor Purchase Requirement. Aplus may implement a buying group that requires franchisees to purchase up to 90% of their total inventory and up to 90% of their cigarette purchases monthly, at cost, from Approved Suppliers or Designated Specific Suppliers.
No purchases from other suppliers will be credited toward meeting this requirement. The cost used to calculate the percentage will only include the cost on vendor invoices, excluding allowances, rebates, and discounts not reflected on those invoices.
To ensure purchases count toward the requirement, franchisees must order and pay through Aplus's recommended method for each vendor. This means franchisees need to adhere strictly to the specified purchasing protocols to get credit for their spending towards the Approved Vendor Purchase Requirement.