What factors does Aplus consider when approving a site for an APLUS Store location?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You must obtain our prior written approval for the site your APLUS Store will be located. With respect to a conversion, we will consider the condition of the building as well as exterior and interior layouts. With respect to all APLUS Store locations, we consider such factors as: demographics, accessibility of the site, proximity and nature of competitive businesses, traffic counts, traffic regulations such as speed, traffic lights and stop signs, visibility of the site, the extent to which the neighborhood is commercial, industrial or residential, the proximity of facilities which draw people to the area such as recreation areas, shopping centers, schools or employment and whether beer and wine may be sold from the premises.
You must obtain our written approval of the site within 30 days following the signing the Franchise Agreement. We will use reasonable efforts to approve or disapprove your site within 30 days following our receipt of your approval request. If you and we are unable to come to an agreement on a site, and no other qualified site is found within 90 days following execution of the Franchise Agreement, we have the right to terminate the franchise. Any Initial Franchise Fee or Supplemental Franchise Fee paid to us is fully earned and is non-refundable.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, AND TRAINING (FDD pages 40–47)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, site selection is a crucial step that requires the franchisor's prior written approval. For franchisees considering converting an existing location into an Aplus store, Aplus will assess the building's condition, along with the exterior and interior layouts. For all Aplus store locations, the company considers several factors to determine site suitability.
These factors include demographics, which likely involves analyzing the population density, age, income levels, and other relevant characteristics of the surrounding area. Accessibility of the site is also important, taking into account ease of entry and exit, parking availability, and proximity to major roads or public transportation. Aplus will also evaluate the proximity and nature of competitive businesses to understand the existing market landscape and potential challenges. Traffic counts and traffic regulations, such as speed limits, traffic lights, and stop signs, are considered to assess the flow of potential customers. The visibility of the site is another key factor, ensuring that the Aplus store is easily seen by passing traffic.
Furthermore, Aplus considers the nature of the neighborhood, whether it is primarily commercial, industrial, or residential, to understand the customer base and tailor the store's offerings accordingly. The proximity of facilities that attract people to the area, such as recreation areas, shopping centers, schools, or employment centers, is also evaluated. Finally, Aplus considers whether the sale of beer and wine is permissible from the premises, which can significantly impact revenue potential.
Aplus requires franchisees to obtain written approval of the site within 30 days of signing the Franchise Agreement. Aplus will then use reasonable efforts to approve or disapprove the site within 30 days of receiving the approval request. If an agreement on a site cannot be reached, and no other qualified site is found within 90 days of signing the Franchise Agreement, Aplus reserves the right to terminate the franchise. In such a case, any Initial Franchise Fee or Supplemental Franchise Fee paid is fully earned and non-refundable, highlighting the importance of thorough site selection and approval.