What financial standards must a transferee meet to be approved by Aplus for a transfer of agreement or controlling interest?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
in this Agreement and the sale of a Controlling Interest in you if you are a Business Entity) require Franchisor's prior written consent. Franchisor will not unreasonably withhold its consent to a transfer, but may condition its consent on satisfaction of any or all of the following:
- 8.4.1. Your written request for consent and delivery of a copy of the proposed transfer agreements, including sale terms, at least 30 days prior to the proposed transfer, and Franchisor has determined, in its sole and reasonable discretion, that the terms of the sale will not materially and adversely affect the post transfer viability of any Store in operation at the time of transfer.
- 8.4.2. The transferee has demonstrated to Franchisor's satisfaction that the transferee meets Franchisor's then-current educational, managerial and business standards;
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a transferee seeking approval for a transfer of agreement or controlling interest must demonstrate to Aplus's satisfaction that they meet certain financial standards. Specifically, the transferee must have sufficient equity capital to operate each Aplus store.
To meet this condition, the FDD states that it will be presumed that the transferee has sufficient equity capital if the transferee's net worth is equal to or exceeds the transferor's net worth at the time of the transfer. This calculation excludes the value of each Aplus store.
In addition to demonstrating sufficient equity capital, the transferee must also meet Aplus's then-current educational, managerial, and business standards, possess a good moral character, business reputation, and credit rating, and have the aptitude and ability to operate each Aplus store. If the transferee is a business entity, its owners must sign Aplus's standard form of Guaranty and Personal Undertaking.