For Aplus franchises, when is the Royalty Fee due monthly?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
The Royalty, including the Minimum Monthly Royalty shall be collected in advance and will be credited against royalty due as calculated on the total Gross Sales at the end of each month. The Rent and Royalty (which includes the Minimum Monthly Royalty) are due and payable in advance, without demand or notice: (i) where a monthly installment is required, on or before the tenth (10th) day of the month; or (ii) where a semi-monthly installment is required, on or before the tenth (10th)
day of the month and on or before the twenty-fifth (25th) day of the month. Rent and fees shall be prorated on a daily basis for periods of less than one (1) month.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the Royalty Fee, including the Minimum Monthly Royalty Fee, is collected in advance. If a monthly installment is required, it is due on or before the tenth (10th) day of the month. If a semi-monthly installment is required, it is due on or before the tenth (10th) day of the month and on or before the twenty-fifth (25th) day of the month.
This means that as an Aplus franchisee, you must ensure that the Royalty Fee is paid in advance by the 10th of each month, or follow the semi-monthly schedule if applicable. Failing to pay on time can result in interest charges and potential collection costs.
It is important to note that Aplus requires franchisees to pay Royalty Fees through electronic transfer, using a method approved by Aplus. This ensures a secure and trackable payment process. Franchisees should also be aware of the Minimum Monthly Royalty Fee, which is the minimum amount that must be paid, and any difference between the regular Royalty Fee and the Minimum Monthly Royalty Fee must be paid at the same time and in the same manner as the Royalty Fee.