How should Aplus franchisees remit Royalty Fees to the Franchisor?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay to Franchisor without offset, credit, or deduction of any nature, a fee ("Royalty Fee") in the amount stated and in compliance with the timeframe described on Attachment 1. The Franchisor requires Franchisee to pay Royalty Fees through electronic transfer as set forth in Section 3.7, which shall be submitted to Franchisor through a method that Franchisor approves.
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.
All Royalty Fees, Marketing Fees, Technology Fees, and any other amounts not received by Franchisor on the due date, will be subject to interest charges equal to the highest rate allowed by applicable state law. Interest will begin to accrue from the date payment was due, but not received, or date of underpayment, until payment is received in full. Franchisee shall pay Franchisor for all costs incurred by Franchisor in the collection of any unpaid and past due amounts, including reasonable collection or attorney fees.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to pay Royalty Fees through electronic transfer. These payments must be submitted to Aplus through a method that Aplus approves. The specific amount and timeframe for these payments are detailed in Attachment 1 of the Franchise Agreement.
In addition to Royalty Fees, Aplus franchisees also pay a Marketing Fee, which is due monthly on the tenth of the month and is to be paid in the same manner as the Royalty Fee. This fee is capped at the lesser of $1,500 or 2% of monthly Gross Sales, with the current fee being $750 per month.
It's important to note that if any Royalty Fees, Marketing Fees, Technology Fees, or other amounts are not received by Aplus on the due date, they will be subject to interest charges at the highest rate allowed by applicable state law. This interest accrues from the date the payment was due until it is received in full, and the franchisee is responsible for covering all collection costs, including reasonable attorney fees, incurred by Aplus in the process of recovering unpaid amounts.