How is the Funded Amount amortized for an Aplus franchise, and over what period?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
The Funded Amount shall be amortized monthly in equal installments beginning in the first year of the term of APLUS Agreement. If APLUS Agreement is terminated for any reason prior to the expiration of the term, Franchisee shall repay to Sunoco the unamortized Funded Amount. Sunoco shall maintain records indicating the total amount due and owing from Franchisee with respect hereto and shall, upon written request by Franchisee, provide Franchisee with copies of such records. Franchisee's obligation to repay
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee accepts funding for equipment and construction, the "Funded Amount" will be amortized monthly in equal installments. This amortization begins in the first year of the Aplus Agreement's term.
If the Aplus Agreement is terminated for any reason before the end of its term, the franchisee is responsible for repaying Sunoco (Aplus's parent company) the unamortized portion of the Funded Amount. Sunoco will maintain records of the franchisee's total outstanding balance related to this funding and will provide copies of these records upon the franchisee's written request.
The franchisee's obligation to repay the Funded Amount upon termination is in addition to any other rights or claims Sunoco may have due to the termination. The FDD also mentions that tax issues may arise with respect to the Funding Agreement, and Aplus recommends consulting a tax advisor.