What fees do Aplus Area Representatives NOT share in?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Franchisor may, in its sole discretion, utilize a relationship with parties known as Area Representatives who are designated by the Franchisor, within a defined geographic area, to assist in the offering of franchises for APLUS Stores. In addition, the Area Representative may be designated by Franchisor to perform the servicing of such APLUS Store in compliance with what is required of Franchisor in the Agreement and Manual. All Area Representatives are independent contractors and must complete a training program to Franchisor's satisfaction before they are permitted to assume their duties. Franchisor retains the right to compensate Area Representatives for services rendered by paying them a percentage of the Initial Franchise Fee and/or a percentage of the monthly Royalty fees collected from those APLUS stores located within the Area Representative's defined territory. Area Representatives do not collect these fees directly and do not share in any Marketing Fees paid by Franchisee. If such rights are assigned to the Area Representative, upon our notice Franchisee shall remit all such payments directly to the Area Representative.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Area Representatives may be utilized by Aplus to assist in offering franchises and servicing Aplus stores within a defined geographic area. Aplus compensates these Area Representatives with a percentage of the Initial Franchise Fee and/or a percentage of the monthly Royalty fees collected from Aplus stores in their territory.
However, the FDD explicitly states that Aplus Area Representatives do not collect these fees directly from franchisees. Instead, franchisees remit payments directly to Aplus or the Area Representative if Aplus assigns those rights.
Most importantly, the document specifies that Aplus Area Representatives do not share in any Marketing Fees paid by franchisees. This means that while Area Representatives may benefit from franchise and royalty fees, they do not receive a portion of the funds allocated for marketing, advertising, and promotion of the Aplus brand.