What is considered a 'Captive Market' for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You may receive either a Leased APLUS Store or Non-Leased APLUS Store, as indicated on the Summary Page. Further the Leased APLUS Store or Non-Leased APLUS Store may be located in a Captive Market, for which you may be subject to additional fees. Terms of this Agreement are further amended by the respective terms in Attachment 1.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
Based on the 2024 Aplus Franchise Disclosure Document, the document mentions the term "Captive Market" in relation to Aplus store locations, indicating that Leased or Non-Leased Aplus Stores may be situated in a Captive Market. If a store is in a Captive Market, the franchisee may be subject to additional fees. The specific definition of what constitutes a "Captive Market" for an Aplus store is not explicitly defined in the provided excerpts. However, Attachment 1 to the Franchise Agreement Key Terms includes specific modifications for Aplus Stores located in a Captive Market, particularly concerning Section 3, which deals with fees.
Since the definition of a Captive Market is not provided, it is important for a prospective franchisee to understand what specific locations Aplus considers to be Captive Markets. This information is crucial because it affects the fees that the franchisee will be required to pay. The franchisee needs to evaluate whether the potential revenue from a Captive Market location justifies the additional fees.
To gain clarity, a potential Aplus franchisee should ask Aplus for a precise definition of "Captive Market." They should also inquire about the types of locations that Aplus considers to be Captive Markets and the specific additional fees associated with operating in such markets. Understanding these details is essential for making an informed decision about investing in an Aplus franchise.