What is the due date for the monthly royalty fee payment for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay to Franchisor without offset, credit, or deduction of any nature, a fee ("Royalty Fee") in the amount stated and in compliance with the timeframe described on Attachment 1. The Franchisor requires Franchisee to pay Royalty Fees through electronic transfer as set forth in Section 3.7, which shall be submitted to Franchisor through a method that Franchisor approves.
Franchisor has established and administers a System-wide marketing, advertising and promotion program to facilitate regional advertising and marketing efforts. Beginning on the Commencement Date Franchisee shall contribute to the marketing program a marketing fee not to exceed the lesser of one thousand five hundred dollars ($1,500) or two percent (2%) of monthly Gross Sales ("Marketing Fee"), currently seven hundred and fifty dollars ($750) per month. The Marketing Fee is due monthly on the tenth (10th) of the month and shall be paid in the same manner as the Royalty Fee.
All Royalty Fees, Marketing Fees, Technology Fees, and any other amounts not received by Franchisor on the due date, will be subject to interest charges equal to the highest rate allowed by applicable state law. Interest will begin to accrue from the date payment was due, but not received, or date of underpayment, until payment is received in full. Franchisee shall pay Franchisor for all costs incurred by Franchisor in the collection of any unpaid and past due amounts, including reasonable collection or attorney fees.
Notwithstanding any designation by Franchisee, Franchisor shall have the right to apply any payments by Franchisee to any past due indebtedness of Franchisee for Royalty Fees, Marketing Fees, Technology Fees, purchases from Franchisor, or any Affiliate, or any other amount owed to Franchisor, or any Affiliate, in any proportion or priority.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the monthly royalty fee is due on the 10th of each month. The franchisee is required to pay the royalty fee without any deductions, credits, or offsets, as specified in Attachment 1. Aplus requires franchisees to make these payments via electronic transfer, using a method approved by Aplus, as detailed in Section 3.7.
In addition to the royalty fee, Aplus franchisees must also pay a Marketing Fee, which is also due monthly on the 10th of the month, using the same payment method as the royalty fee. This Marketing Fee is capped at the lesser of $1,500 or 2% of monthly Gross Sales, with the current fee set at $750 per month. Aplus will provide at least 30 days' notice before changing the Marketing Fee requirements.
If a franchisee fails to meet the royalty fee payment deadline, Aplus will impose interest charges on the overdue amount. These charges will be calculated at the highest rate permitted by applicable state law and will accrue from the original due date until the payment is made in full. The franchisee is also responsible for covering all collection costs incurred by Aplus, including reasonable attorney fees, in the event of unpaid or past due amounts.
Furthermore, Aplus retains the right to allocate any payments received from the franchisee towards any outstanding debts, including royalty fees, marketing fees, technology fees, purchases from Aplus or its affiliates, or any other amounts owed. This allocation can be applied in any proportion or priority, regardless of any specific designation made by the franchisee.