Is an APLUS franchisee required to maintain a minimum merchandise inventory?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not use the APLUS Store or premises for any other purpose other than as an APLUS Store or Concurrent Operation. Minimum standards of quality and the variety of merchandise offered for sale by you and specifications for equipment, uniforms and some products are set forth in the Franchise Agreement and the Systems Manual.
You are required to maintain a minimum merchandise inventory of a type, quality, quantity and variety as provided in the Systems Manual ("Minimum Inventory Requirements"). We will provide to you a list of such "Minimum Inventory Requirements" that we may amend and/or supplement during the term of the franchise.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 52–53)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to maintain a minimum merchandise inventory. The specific type, quality, quantity, and variety of merchandise are detailed in the Aplus Systems Manual, which Aplus may amend or supplement during the franchise term.
This requirement ensures that Aplus stores maintain a consistent standard and offer a sufficient range of products to customers. Aplus will provide franchisees with a list of these 'Minimum Inventory Requirements'. Franchisees must also adhere to Aplus's planogram for their store, including floor and shelf specifications by category. While franchisees can offer other items for sale, these must be approved by Aplus.
Aplus also requires franchisees to sell specific brands of merchandise to maintain uniformity across all stores. Designated Service Providers will supply store-specific layouts, merchandise planograms, and vendor-approved racks. Franchisees are obligated to purchase up to 90% of their total inventory purchases and cigarette purchases from Approved Suppliers or Designated Specific Suppliers.
These inventory requirements and restrictions on suppliers are common in franchising to maintain brand consistency and quality control. Prospective franchisees should carefully review the Systems Manual and Approved Supplier lists to understand the full scope of these obligations and their potential impact on costs and operational flexibility.