When is the Development Fee due for an Aplus franchise, and how is the amount calculated?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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Development Agreement
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Development Fee | $15,000 + ($7,500 * Number of APLUS Stores) | At time of signing the Development Agreement | You will pay the remaining initial franchise fee upon signing the secon |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the Development Fee is due at the time of signing the Development Agreement. The amount is calculated as $15,000 plus $7,500 for each Aplus store to be developed under the agreement.
For a prospective Aplus franchisee, this means that the initial investment will include this development fee, which can vary depending on the number of stores they plan to open. For example, if a franchisee plans to open two Aplus stores, the development fee would be $15,000 + ($7,500 * 2) = $30,000.
It is important to note that the remaining initial franchise fee is paid upon signing the second and each subsequent franchise agreement. This staged payment structure may ease the initial financial burden for franchisees planning multiple locations. Franchisees should carefully consider the number of stores they commit to developing, as this decision directly impacts the upfront development fee.