How is the cost value calculated for the 'Approved Vendor Purchase Requirement' for an Aplus franchise?
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. The cost value used to calculate your percentage of
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Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the cost value for calculating the 'Approved Vendor Purchase Requirement' is based on vendor invoices. Aplus franchisees may be required to participate in a buying group and purchase up to 90% of their total inventory and up to 90% of their cigarette purchases monthly from approved or designated suppliers.
The cost value used to calculate these percentages will only include the cost reflected on vendor invoices. Any allowances, rebates, and discounts not listed on the invoices will not be included in the cost calculation.
To ensure purchases count toward the 'Approved Vendor Purchase Requirement', Aplus franchisees must order and pay for products through the company's recommended method for each vendor. This requirement ensures that Aplus can accurately track and verify purchases from approved suppliers, maintaining quality control and brand consistency across all franchise locations.