Does Aplus have exclusive control over the creative concepts and content of advertising programs funded by the Marketing Fee?

According to Aplus's 2024 Franchise Disclosure Document, Aplus retains exclusive control over the creative concepts and content of advertising programs funded by the Marketing Fee. Aplus also has sole discretion in directing all advertising programs and making advertising placement decisions. This includes allocating Marketing Fee contributions to production, placement, and other related costs.

This means that as an Aplus franchisee, you will contribute to a Marketing Fee, which is up to $1,500 or 2% of Gross Sales, whichever is less, but currently all franchisees contribute $750 per month. However, you will have limited to no say in how these funds are used for advertising. Aplus decides the creative direction, content, and placement of all advertising. While this ensures brand consistency, it also means franchisees cannot directly influence marketing strategies or tailor campaigns to their specific local market conditions.

It is important to note that Aplus is not obligated to ensure that the expenditures from the Marketing Fee will proportionately or equally affect any geographic area or be equivalent to the contributions from Aplus stores operating in that area. Additionally, Aplus does not have a fiduciary obligation for administering the Marketing Fee, and there is no requirement for the Marketing Fee monies to be audited. While Aplus does not provide an accounting of how the Marketing Fee monies are spent, the FDD states that most of the Marketing Fee monies are spent in the year in which they accrue, and the remaining amount is carried over to the following year.

Prospective franchisees should consider the implications of this centralized control and lack of direct influence over marketing efforts. While Aplus's approach may benefit from economies of scale and brand uniformity, franchisees should evaluate whether the potential benefits outweigh the lack of control over how their Marketing Fee contributions are utilized in their specific market.