What is the estimated range for the collateral deposit for a non-leased Aplus store (new)?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
oco Retail LLC
| Type of Expenditure 1 | Leased APLUS Store | Non-Leased APLUS Store | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Us | |||||
| Uniforms | $150 to $ 1,100 | $150 to $ 1,100 | As Arranged | As Arranged | Vendors |
| Insurance (Three months) | $3,750 to $ 6,050 | $3,750 to $ 6,050 | As Arranged | As Arranged | Insurance Carrier |
| Collateral Deposit 11 | $10,000 to $20,000 | $10,000 to $20,000 | Lump Sum | Prior to opening | Us |
| Misc. Supplies | $500 to $ 1,700 | $500 to $ 1,700 | As Arranged | As Arranged | Vendors |
| Initial Grand | $ 3,400 | $ 3,400 | As | As Arranged | Vendors |
| Opening | Arranged | ||||
| Proprietary Items | $5,000 to $15,000 | $5,000 to $15,000 | As Arranged | As Arranged | Vendors |
| Training Expense Travel/Lodging | $2,500 to $ 5,800 | $2,500 to $ 5,800 | As Arranged | As Arranged | Transportation, Hotels, Stores Vendors |
| Additional Funds 12 | $54,000 to $ 111,000 | $54,000 to $ 111,000 | As Arranged | As Necessary | Employees, suppliers, and others |
| TOTALS | $232,590 to $ |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–33)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the estimated range for the collateral deposit for a new, non-leased Aplus store is $10,000 to $20,000. This deposit is paid in a lump sum and is due prior to opening the store. The payment is made directly to Aplus. Note 11 further clarifies that this collateral security deposit is refundable under certain terms, although those terms are not specified in this excerpt.
This collateral deposit is part of the initial investment required to start an Aplus franchise. It is important for prospective franchisees to understand the terms under which this deposit is refundable, as it can impact their overall financial planning. Franchisees should budget for this expense when projecting their startup costs.
It is typical in franchising for franchisors to require some form of security deposit or collateral to protect their interests. The specific amount and terms can vary widely depending on the brand, the industry, and the franchisee's individual circumstances. Prospective Aplus franchisees should carefully review the franchise agreement and discuss the collateral deposit terms with the franchisor to fully understand their obligations and rights.