What fee must the Franchisee pay to Aplus for a transfer to a Controlled Entity?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) The Controlled Entity is newly organized and its charter or articles of formation provides that its activities are confined exclusively to the operation of the Franchised Business;
- (b) Franchisee or all holders of a legal or beneficial interest in Franchisee own all of the equity and voting power of the outstanding stock or other capital interest in the Controlled Entity;
- (c) All obligations of Franchisee to Franchisor or any Affiliate are fully paid and satisfied and Franchisee pays to Franchisor the Transfer Fee listed in the Summary Page;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a franchisee must pay a transfer fee to Aplus when transferring the franchise to a controlled entity. The specific amount of this transfer fee is listed on the Summary Page of the Franchise Agreement.
For a transfer to a controlled entity to be approved, several conditions must be met. The controlled entity must be newly organized with its activities limited to operating the Aplus franchised business. Additionally, the franchisee or those holding interest in the franchisee must own all equity and voting power in the controlled entity.
Furthermore, all obligations of the franchisee to Aplus or any affiliate must be fully paid and satisfied before the transfer can occur. Meeting these conditions and paying the transfer fee outlined in the Summary Page are necessary steps for a franchisee looking to transfer their Aplus franchise to a controlled entity.