For each Franchise Agreement signed under the Development Agreement, what initial franchise fee deposit must be paid to Aplus?

According to Aplus's 2024 Franchise Disclosure Document, for each Franchise Agreement signed under the Development Agreement, the franchisee must pay an initial franchise fee deposit. The amount of this deposit is detailed in the Summary Page of the Development Agreement. When a franchisee signs a Franchise Agreement for the first store, Aplus will credit a portion of the Development Fee to fully satisfy the initial franchise fee.

For each additional store after the first, Aplus will credit a portion of the Development Fee to satisfy half of the initial franchise fee. The franchisee is then responsible for paying the remaining balance of the initial franchise fee. This means that while the initial franchise fee is partially covered by the Development Fee, the franchisee will still need to budget for these additional payments when expanding beyond the first store.

Prospective Aplus franchisees should carefully review the Summary Page of the Development Agreement to understand the exact amounts of the Development Fee and initial franchise fees. They should also clarify with Aplus how much of the Development Fee will be credited towards each initial franchise fee, especially for subsequent stores, to accurately forecast their investment requirements.