What does the Aplus indemnification fee cover, and when is it due?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Amount of loss or damages plus costs | As incurred | You must defend, indemnify, and hold us and our related parties harmless from all fines, suits, proceedings, claims, demands, obligations or actions of any kind (including costs and reasonable attorneys' fees) arising from the performance of your obligations under the Development Agreement. |
| Administrative | $1,000 | As incurred | You must pay us this administrative fee if you fail to obtain minimum insurance requirements and we elect to obtain the missing insurance policies for you. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| data to and from your APLUS Store. | |||
| Technology Fee | $330 to $600 | Monthly | This covers our providing to you required software licenses, access to our back-office system, helpdesk support, a website, e-mail set up, and email hosting for one email address. We reserve the right to reduce this fee, and upon written notice to you we may increase this fee. |
| Failure to Open Fee | Prorated Non Leased Minimum Monthly Royalty Fee per day for each calendar day you fail to open the APLUS Store for business | When billed | You must take possession and open the APLUS Store on the agreed upon commencement date. If you do not, we reserve the right to charge you the Failure to Open Fee. |
| Liquidated | See Note 4 | Upon | |
| Damages4 | demand | Payable if the APLUS Franchise | |
| Collateral Security Deposit | $10,000 minimum and up to $20,000 | Before opening your APLUS Store | The Collateral Security Deposit varies based on your credit rating. If you operate an APLUS Franchise in a Captive Market, we may charge a higher Collateral Security Deposit. |
| National or Regional Conference | Up to $800 per person | Upon demand | We encourage but do not require your attendance at any regional or national conference. If you send an employee to our conference, you are responsible for his or her travel, wages, food, conference fee, and other costs related to attending. |
| Indemnification | Amount of loss or damages plus costs | As incurred | You must defend, indemnify, and hold us and our related parties harmless from all fines, suits, proceedings, claims, demands, obligations or actions of any kind (including costs and reasonable attorneys' fees) arising from your ownership, operation or occupation of your APLUS Store, performance or breach of your obligations, breach of any |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the indemnification fee covers the amount of loss or damages plus costs incurred by Aplus. This fee is due as incurred.
Specifically, franchisees must defend, indemnify, and hold Aplus and its related parties harmless from all fines, suits, proceedings, claims, demands, obligations, or actions of any kind. This includes costs and reasonable attorneys' fees arising from the performance of the franchisee's obligations under the Development Agreement.
Additionally, franchisees must indemnify Aplus and its related parties from all fines, suits, proceedings, claims, demands, obligations, or actions of any kind, including costs and reasonable attorneys' fees, arising from the franchisee's ownership, operation, or occupation of their Aplus Store. This also includes instances related to the performance or breach of their obligations, or any breach of obligations.