What was the distribution to IDR holders paid by Aplus on February 19, 2021?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
0 | 75 % | 25 % | | Thereafter | Above $0.656250 | 50 % | 50 % |
Cash Distributions
Our Partnership Agreement sets forth the calculation used to determine the amount and priority of cash distributions that the common unitholders receive.
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, on February 19, 2021, the distribution to IDR (Incentive Distribution Rights) holders was $18. This is based on a per unit distribution of $0.8255, with a total cash distribution of $69.
These distributions to IDR holders are part of Aplus's overall financial structure, where available cash from operating surplus is allocated between common unitholders and IDR holders based on specified target distribution levels. The table outlines that the distribution to IDR holders on February 19, 2021, was a fixed amount, regardless of the percentage allocations tied to different target distribution levels.
Prospective Aplus franchisees should understand how these distributions impact the overall financial health and stability of the company. While the distributions to IDR holders don't directly affect the franchisee's revenue, they provide insight into how Aplus manages its cash flow and allocates profits among its stakeholders. Understanding these financial mechanisms can help franchisees assess the long-term viability and potential growth of the Aplus franchise system.