What is the Aplus franchisee's obligation regarding signs and advertising materials on the premises?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
s Section 10.2. and the construction requirement under this Agreement including Attachment 1 of this Agreement, shall be the renovation of the Franchised Business in accordance with the provisions of the predecessor franchise agreement. The Franchisor on its sole discretion, may allow the Franchisee to complete the renovation after signing this Agreement, the renovation must be completed in accordance with the provisions of this Agreement and any attachment thereto by the date specified by the Franchisor.
- (a) Franchisee shall make no changes to any building, plan, design, layout or décor, or any equipment or signage in the Franchise business without our prior written consent, and such changes may not be contrary to required specifications.
- (b) Signs: Franchisee shall prominently display, at the Franchisee's expense, both on the interior and exterior of the Franchised Business premises, signs in such form, color, number, location and size, and containing such Marks as the Franchisor designates. The Franchisor also may require the Franchisee to use illuminated signs. The Franchisee shall obtain all permits and licenses required for such signs and will also be responsible for ensuring that all signs comply with laws and ordinances. The Franchisee shall not display in or upon the Franchised Business premises any sign or advertising of any kind to which the Franchisor objects. The Franchisor reserves the right to require the Franchisee to update the signage ant any time at the Franchisee's expense.
- (c) Services: The Franchisee shall conform to all quality and customer services standards prescribed by the Franchisor in writing.
10.3. Variance
Franchisor has the right to vary standards or specifications for any franchisee 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 exceed the lesser of one thousand five hundred dollars ($1,500) or two percent (2%) of monthly Gross Sales ("Marketing Fee"), currently seven hundred and fifty dollars ($750) per month. The Marketing Fee is due monthly on the tenth (10th) of the month and shall be paid in the same manner as the Royalty Fee. Franchisor shall notify Franchisee at least thirty (30) days before changing Marketing Fee requirements. The marketing program shall be maintained and administered by Franchisor or its designee as follows:
11.1.1. Franchisor shall oversee all marketing programs, with sole control over creative concepts, products, services, offers, materials and media used in such programs, and the placement and allocation thereof (the "Marketing Program"). Franchisor does not warrant that any particular franchisee will benefit directly or pro rata from expenditures by the Marketing Program.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding signs and advertising materials. Aplus requires franchisees to prominently display signs, both inside and outside the premises, that conform to Aplus's designated form, color, number, location, and size, and contain Aplus's Marks. Franchisees are responsible for obtaining all necessary permits and licenses for these signs and ensuring they comply with all applicable laws and ordinances.
Franchisees cannot display any sign or advertising that Aplus objects to and Aplus retains the right to require franchisees to update signage at any time, with the franchisee bearing the expense. Additionally, franchisees must submit all advertising and promotional materials to Aplus for prior approval, including billboards, television and radio ads, ad copy, coupons, flyers, scripts, sponsorships, and direct mail. Aplus has 30 days to provide notice of approval or disapproval. Failure to obtain written approval from Aplus before using any marketing or promotional material is a violation of the agreement.
Upon termination or expiration of the franchise agreement, franchisees must modify the Aplus Store premises to distinguish it from other Aplus locations, including changing the color scheme and other design features. If the franchisee fails to do so, Aplus has the right to enter the premises and take necessary actions to de-identify the location, including removing all signage, advertising materials, trade dress, displays, proprietary equipment, and products displaying Aplus's Marks.
Overall, these stipulations ensure brand consistency and control over Aplus's image, but they also place the financial burden of signage, updates, and de-identification on the franchisee. Prospective franchisees should carefully consider these costs and restrictions when evaluating the Aplus franchise opportunity.