For Aplus franchises, where can I find the specific Minimum Monthly Royalty Fee amounts?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If the Royalty Fee paid to Franchisor is less than the respective minimum monthly royalty fee ("Minimum Monthly Royalty Fee") as described in Attachment 1, then Franchisee shall pay to Franchisor the difference between monthly Royalty Fee and the respective Minimum Monthly Royalty Fee, payable at the same time and in the same manner as the Royalty Fee.
5.6. Failure to Open
Franchisee must take possession of the APLUS Store and open by the Commencement Date. If Franchisee fails take possession of and open the APLUS Store for business on the Commencement Date, in addition to any other remedies herein provided, Sunoco, at its option, shall have the right to collect, as liquidated damages and not as a penalty, the prorated Minimum Royalty Fee per day for each calendar day you fail to open the APLUS Store for business.
- "Minimum Monthly Royalty Fee" has the meaning given to such term in Section 3.3 and as further described in Attachment 1.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the specific amounts for the Minimum Monthly Royalty Fee can be found in Attachment 1. Section 3.3 defines the Minimum Monthly Royalty Fee as the difference between the monthly Royalty Fee paid and the respective minimum amount described in Attachment 1. This means that if the standard royalty fee calculation results in a number lower than the minimum, the franchisee must pay the difference to meet the minimum requirement.
Attachment 1 is a crucial document for prospective Aplus franchisees because it outlines the specific financial obligations related to royalty payments. Franchisees need to carefully review Attachment 1 to understand the exact minimum monthly royalty fee applicable to their franchise, as this will directly impact their monthly expenses and profitability.
Furthermore, the document states in Section 5.6 that if a franchisee fails to open their Aplus store by the commencement date, Sunoco has the right to collect the prorated Minimum Royalty Fee per day for each day the store is not open. This highlights the importance of adhering to the agreed-upon opening date to avoid incurring additional costs. The definition of "Minimum Monthly Royalty Fee" in Section 3.3 and as further described in Attachment 1 is also listed in the definitions section.