When is the Development Fee due for an Aplus Development Agreement, and how is the amount calculated?

According to Aplus's 2024 Franchise Disclosure Document, a Development Fee is required when signing a Development Agreement. The fee is calculated as $15,000 plus an additional $7,500 for each Aplus store to be developed under the agreement.

This fee structure means that the more stores an Aplus franchisee commits to developing, the higher the initial Development Fee will be. The initial $15,000 likely covers the administrative and legal costs associated with setting up the development agreement. The additional $7,500 per store probably accounts for the support and resources Aplus will provide to help the franchisee establish each location.

It is important to note that the franchisee will pay the remaining initial franchise fee upon signing the second and each subsequent franchise agreement. This means that the Development Fee is separate from the standard franchise fee for each individual Aplus store, and the franchisee will need to budget for both when planning their expansion.