When is the Equipment and Construction Funding due for an Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
h period |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| actual costs of enforcement, whichever is higher | |||
| Marketing Fee | Up to $1,500 or 2% of Gross Sales (whichever is less), currently $750 | Monthly on the 10th | |
| Equipment and Construction Funding2 | An amount that you and we agree, up to $150,000 | At the time of execution of the agreement | You pay us the agreed upon amount, which we will then spend on your behalf on required equipment for and construction of your APLUS Store. |
| Kerosene Fee (if applicable) | $250 per month | Monthly | Not all APLUS Stores are allowed to offer kerosene for resale to the public. |
| Transfer Fee | $15,000 | When you submit your request for transfer | 100% transfer of all businesses operated at the APLUS Store. |
| Transfer Fee (for convenience)3 | $1,500 | When you submit your request for transfer | |
| Transfer Evaluation Fee | $1,000 | When billed | We have the right to charge this fee to cover our costs for evaluating the proposed transfer. |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the Equipment and Construction Funding is due at the time of execution of the agreement. This funding, which can be up to $150,000, is an amount that the franchisee and Aplus agree upon.
This funding is specifically earmarked for Aplus to spend on the franchisee's behalf for required equipment and construction of the Aplus store. It's important to note that the Equipment and Construction Funding Agreement is an optional program, as detailed in Note 2 of Item 6.
Prospective franchisees should carefully consider whether to participate in this optional program, weighing the benefits of Aplus managing the equipment and construction against the potential for direct control and cost management if they were to handle these aspects themselves. Understanding the specifics of the agreement, as outlined in Attachment 7 to the Franchise Agreement, is crucial before making a decision.