When is the Aplus default fee of $1,500 due?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
sit. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| National or Regional Conference | Up to $800 per person | Upon demand | We encourage but do not require your attendance at any regional or national conference. If you send an employee to our conference, you are responsible for his or her travel, wages, food, conference fee, and other costs related to attending. |
| Indemnification | Amount of loss or damages plus costs | As incurred | You must defend, indemnify and hold us and our related parties harmless from all fines, suits, proceedings, claims, demands, obligations or actions of any kind (including costs and reasonable attorneys' fees) arising from your ownership, operation or occupation of your APLUS Store, performance or breach of your obligations, breach of any representation or acts or omissions of you or your employees. |
| Default Fee | $1,500 per event of default, plus the cost of reinspection and cost of enforcing compliance | Within 3 days of demand | Applies if you are in defau |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the default fee is due within 3 days of demand. This fee is triggered when a franchisee is in default under their franchise agreement. The amount of the default fee is $1,500 per event of default. In addition to the $1,500 fee, the franchisee is responsible for covering the costs of reinspection and the expenses associated with enforcing compliance with the franchise agreement.
This means that if an Aplus franchisee violates the terms of their franchise agreement, Aplus can demand immediate payment of $1,500, plus any associated costs. The franchisee has only 3 days to remit payment from the date of demand.
It is important for prospective Aplus franchisees to understand what constitutes a default under the franchise agreement to avoid incurring this fee. Carefully reviewing the franchise agreement and seeking legal counsel can help a franchisee understand their obligations and avoid potential defaults.