What is Aplus franchisee required to do regarding the identity of its Designated Manager?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchised Business. If Franchisee requests additional assistance with respect to the opening or continued operation of the Franchised Business, and should Franchisor deem it necessary and appropriate to comply with such request, Franchisee shall pay Franchisor's then-current standard rates, plus expenses, for such additional assistance. Franchisor may utilize a Designated Service Provider to perform any of its duties under this Section 8.2 and Section 8 generally.
8.3. Designated Manager Training
If Franchisor determines that the Designated Manager is unable to satisfactorily complete the training program described above, Franchisor has the unrestricted right to terminate this Agreement. If Franchisee is a business entity and the Designated Manager fails to complete the initial training program to Franchisor's reasonable satisfaction, Franchisee may be permitted to select a substitute manager and such substitute manager must complete the initial training to Franchisor's satisfaction. Additionally, if Franchisee replaces its Designated Manager, or brings new principals into the franchise, the new Designated Manager and principals must attend Franchisor's initial training program, or train with a franchisee who agrees to provide such training. Franchisee will be required to pay
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee's Designated Manager is required to complete the initial training program to Aplus's satisfaction. If the Designated Manager is unable to complete the training program satisfactorily, Aplus has the right to terminate the agreement. However, if the franchisee is a business entity, they may be permitted to select a substitute manager who must also complete the initial training to Aplus's satisfaction.
If the franchisee replaces their Designated Manager or brings new principals into the franchise, the new Designated Manager and principals must attend Aplus's initial training program or train with a franchisee who agrees to provide such training. The franchisee will be required to pay Aplus's current rates for additional training, which is presently $1,000 per week. This fee also applies for each additional attendee over the initial three who need to attend training or any remedial training provided to individuals already trained. The franchisee is responsible for covering all costs associated with the employee's training, including the required fee, wages, transportation, lodging, and meals.
This requirement ensures that all Designated Managers and principals are properly trained in the Aplus system and standards. It also protects Aplus's brand and reputation by ensuring that all franchisees are operating their businesses in a consistent and compliant manner. The cost of training a new Designated Manager can be significant, so franchisees should carefully consider the potential costs before making any changes to their management team.