Can an Aplus developer develop more than the minimum number of stores required during a Development Period?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You may, subject to the terms and conditions of this Agreement and with Franchisor's prior written consent, which may be withheld in its sole discretion, develop more than the total minimum number of Stores which you are required to develop during any Development Period.
Any Store developed in excess of the minimum number of Stores required to be developed shall be applied to satisfy your development obligation during the next succeeding Development Period, if any.
Notwithstanding the above, you shall not open or operate more than the cumulative total number of Stores you are obligated to develop under the Development Schedule.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a developer can develop more than the minimum number of stores required during any Development Period, subject to the terms and conditions of the Development Agreement and with Aplus's prior written consent. Aplus may withhold this consent at its sole discretion.
Any stores developed in excess of the minimum required will be applied to satisfy the developer's obligation during the next succeeding Development Period, if any. However, the developer cannot open or operate more than the cumulative total number of stores they are obligated to develop under the Development Schedule.
This clause provides flexibility for developers who may want to accelerate their expansion. However, it also gives Aplus control over the pace of development and ensures that the developer does not exceed the total number of stores they are obligated to develop. This could be beneficial if a developer secures prime locations earlier than anticipated but is subject to Aplus's approval to ensure strategic growth and market saturation is well-managed.