When does the Aplus franchisee's obligation to contribute to the marketing program begin?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
based upon that particular franchisee's qualifications, the peculiarities of the particular site or circumstances, the demographics of the trade area, business potential, existing business practices or any other condition which Franchisor deems to be of importance to the successful operation of any particular Franchised Business. Franchisor shall not be required to disclose or grant to Franchisee a like or similar variance hereunder.
11. ADVERTISING AND PROMOTIONAL ACTIVITIES
11.1. Marketing Fee.
Franchisor has established and administers a System-wide marketing, advertising and promotion program to facilitate regional advertising and marketing efforts. Beginning on the Commencement Date Franchisee shall contribute to the marketing program a marketing fee not to exc
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee's obligation to contribute to the marketing program begins on the Commencement Date. The marketing fee will not exceed the lesser of $1,500 or 2% of monthly Gross Sales. Currently, the marketing fee is $750 per month.
The marketing fee is due monthly on the 10th of the month, and it is to be paid in the same manner as the royalty fee. Aplus will notify the franchisee at least 30 days before changing the marketing fee requirements.
These marketing fees will be used for the Marketing Program, which may include expenditures to meet the costs of administering the Marketing Program, local, regional, or System-wide offers and promotions, conducting market research, product testing and placement, and producing, maintaining, administering and directing consumer advertising. The franchisee is also required to conduct grand opening advertising, with a minimum spend of $3,000, which is in addition to the marketing fee payment.