If I choose to accept the Aplus Funded Amount, what agreement am I required to execute?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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If you choose to accept the Funded Amount, you will be required to execute the Equipment and Construction Funding agreement attached as Attachment 7 to the Franchise Agreement. The funded amount will be amortized monthly in equal installments during the term of the franchise agreement.
For a converted APLUS Store, the Funded Amount is generally 8.33% of the gross sales of the previous 12-month period. For example, $1,200,000 in gross sales of the previous 12-month period would qualify you for a maximum of $100,000. For a newly constructed APLUS Store, the Funded Amount is determined by a net present value and internal rate of return calculation based on the monthly sales volume projection provided by an independent market analysis compan
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 10–13)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee chooses to accept the Equipment and Construction Funded Amount from Aplus, they are required to execute the Equipment and Construction Funding agreement. This agreement is included as Attachment 7 to the Franchise Agreement.
The Funded Amount is designed to help franchisees offset the costs of equipment and construction at their Aplus store location. Aplus will use the funds to pay invoices directly to third parties on the franchisee's behalf. Any funds remaining after these payments will be converted into a credit for the franchisee's account with Aplus. This credit can then be used to cover amounts owed to Aplus, such as royalties and other fees.
The amount of funding offered by Aplus depends on the Aplus Store's projected monthly merchandise sales. For converted Aplus Stores, the Funded Amount is generally 8.33% of the gross sales of the previous 12-month period. For example, if a converted store had $1,200,000 in gross sales over the previous 12 months, it would qualify for a maximum of $100,000 in funding. For newly constructed Aplus Stores, the Funded Amount is determined by a net present value and internal rate of return calculation based on the monthly sales volume projection provided by an independent market analysis company. The funded amount will be amortized monthly in equal installments during the term of the franchise agreement.