For a converted Aplus store, how is the Funded Amount generally calculated?

According to Aplus's 2024 Franchise Disclosure Document, the calculation of the Funded Amount differs between converted and newly constructed stores. For a converted Aplus store, the Funded Amount is generally 8.33% of the gross sales of the previous 12-month period.

To illustrate, if a converted Aplus store had gross sales of $1,200,000 in the previous 12 months, it would qualify for a maximum Funded Amount of $100,000. This funding is part of Aplus's Equipment and Construction Funding program, designed to help franchisees with the costs of equipment and construction. The franchisee is required to execute an Equipment and Construction Funding agreement.

The Funded Amount is amortized monthly in equal installments over the term of the franchise agreement. This means that franchisees will repay the funded amount in consistent, scheduled payments throughout their agreement term. For newly constructed Aplus stores, the Funded Amount is determined differently, using a net present value and internal rate of return calculation based on monthly sales volume projections from an independent market analysis company. Therefore, the method of calculation depends on whether the store is a conversion or new construction.