When is the collateral deposit due to be paid to Aplus?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
oco Retail LLC
| Type of Expenditure 1 | Leased APLUS Store | Non-Leased APLUS Store | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Us | |||||
| Uniforms | $150 to $ 1,100 | $150 to $ 1,100 | As Arranged | As Arranged | Vendors |
| Insurance (Three months) | $3,750 to $ 6,050 | $3,750 to $ 6,050 | As Arranged | As Arranged | Insurance Carrier |
| Collateral Deposit 11 | $10,000 to $20,000 | $10,000 to |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–33)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the collateral deposit is due prior to opening the store. The amount of the collateral deposit ranges from $10,000 to $20,000, payable in a lump sum to Aplus.
This means that before an Aplus franchisee can begin operations, they must provide Aplus with a security deposit within this range. The specific amount will likely depend on factors such as the store type (leased vs. non-leased) and potentially the franchisee's creditworthiness or other qualifications.
It is important to note that this collateral deposit is refundable under certain terms, as indicated in Note 11. Prospective franchisees should carefully review the franchise agreement to understand the conditions under which the deposit will be returned, as well as any circumstances that could lead to forfeiture of the deposit. Understanding these terms is crucial for managing the financial risks associated with the franchise.