If an Aplus franchisee's defaults are curable and Aplus chooses not to terminate the Franchise Agreement, what additional fee can Aplus charge the franchisee?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee's defaults are curable pursuant to Section 16.2.2, or if Franchisor chooses not to terminate your Franchise Agreement, Franchisor reserves the right to charge Franchisee an additional one percent (1%) of Gross Revenue per month in addition to all other fees in this Agreement until Franchisee cures the default. These rights and remedies are in addition to all other remedies available to Franchisor under this Agreement and under law.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee's defaults are curable and Aplus chooses not to terminate the Franchise Agreement, Aplus reserves the right to charge an additional fee. This fee is one percent (1%) of Gross Revenue per month. This is in addition to all other fees outlined in the agreement.
This additional charge continues until the franchisee corrects the default. This clause gives Aplus an alternative to termination, allowing them to collect additional revenue while the franchisee works to resolve the issue.
This provision is in addition to all other remedies available to Aplus under the agreement and under law. This means that Aplus retains all other rights and remedies, such as pursuing legal action or other contractual remedies, even while charging the additional 1% of gross revenue.