How is the Audit Fee (standard audit) calculated for an Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Monthly Royalty Fee") | |||
| Royalty Fee (Captive Market Locations) | Up to 15% of Gross Sales The difference between the actual monthly Royalty Fee paid and up to $2,000 | Monthly on the 20th Monthly on the 20th day of the month payable with the Royalty Fee | For Captive Market locations, this increased Royalty Fee applies instead of the regular Royalty Fee. |
| Alcoholic Beverages Assessment | 1% of Gross Sales | Monthly | Due only if you are prohibited by regulation or statute from selling alcoholic beverages or otherwise chooses not to offer or cannot offer for sale alcoholic beverages. |
| Non-Compliance Fee | Additional 1% of Gross Sales or actual costs of enforcement, whichever is higher | Monthly | Due if you receive two default notices in any 12-month period. |
| Rent2 | $5,000 to $34,000 | Monthly or Semi Monthly as required by lease terms | |
| Marketing Fee | Up to $1,500 or 2% of Gross Sales (whichever is less), currently $750 | Monthly on the 10th | |
| Kerosene Fee (if applicable) | $250 per month | Monthly | Not all APLUS Stores are allowed to offer kerosene for resale to the public. |
| Transfer Fee3 | Percentage of Transfer Consideration | When you submit your request for transfer | 100% transfer of all businesses operated at the APLUS Store. |
| Transfer Fee (for convenience)4 | $1,500 | When you submit your request for transfer | |
| Transfer Evaluation Fee | $1,000 | When billed | We have the right to charge this fee to cover our costs for evaluating the proposed transfer. |
| Audit Fee (standard audit) | 6% of the underreported amount | When billed | |
| Audit Cost | All costs and expenses associated | When billed | Due if your books or re |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the standard audit fee is calculated as 6% of the underreported amount. This fee is charged when billed to the franchisee. This means that if an audit reveals that the franchisee has underreported their gross sales or other relevant financial figures, Aplus will charge a fee equivalent to 6% of the difference between what was reported and what the audit determines to be the correct amount.
This fee serves as a penalty for inaccuracies in financial reporting and incentivizes franchisees to maintain accurate records. It is important for prospective Aplus franchisees to understand that this fee is in addition to any other costs associated with an audit, such as the Audit Cost, which covers all costs and expenses associated with the audit if the franchisee's books or records are missing or incomplete, or if underreporting of 5% or more is discovered.
Franchisees should ensure they have robust accounting practices in place to avoid underreporting and the subsequent audit fees. Maintaining accurate and complete financial records is crucial not only for compliance with the franchise agreement but also for the overall financial health of the Aplus franchise. The franchisor may also offer accounting systems for a monthly fee.