Is the initial franchise fee for an Aplus franchise generally calculated uniformly for all franchisees?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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Initial Franchise Fee
You will pay us an initial franchise fee of $15,000. The franchise fee is payable in full when you sign
Sunoco Retail LLC
the franchise agreement. The initial franchise fee is refundable if we do not execute the franchise agreement for any reason, or if we are unable to timely fulfill certain obligations during construction of a Leased APLUS Store. The initial franchise fee is otherwise fully earned upon receipt and is nonrefundable.
The initial franchise fee is generally calculated uniformly for all franchisees, however we reserve the right to waive or modify the initial franchise fee in circumstances where the location proposed to be franchised has been operating as a convenience store under a different trade name/trademark, where the location proposed is in a particular area where there is a very limited amount of APLUS stores, where the franchisee is or is entering into a motor fuel business relationship with us or our affiliate or where the APLUS franchise operation is located in a Captive Market. In addition, we reserve the right to modify or reduce the franchise fee for multi-site franchisees.
If you choose to operate your franchise in a Captive Market, we may charge a supplemental franchise fee ("Supplemental Franchise Fee") ranging from $15,000 to $300,000 depending on the location of your APLUS Store within the Captive Market. You may pay additional fees to state, county, or other government agency for your right to operate in a Captive Market. The amount and applicability of such a fee is determined solely by us based on a number of factors, including, but not limited to, historical store performance, sales volume, the amount paid by us or an affiliate to purchase the APLUS Store and the value of
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the initial franchise fee is generally $15,000. While this fee is typically uniform for all franchisees, Aplus retains the right to waive or modify it under specific circumstances.
These circumstances include situations where the proposed franchise location previously operated as a convenience store under a different brand, if the location is in an area with few Aplus stores, when the franchisee has a motor fuel business relationship with Aplus or its affiliates, or if the Aplus franchise is in a Captive Market. Aplus also reserves the right to adjust the franchise fee for franchisees who operate multiple locations.
For franchisees choosing to operate in a Captive Market, a supplemental franchise fee ranging from $15,000 to $300,000 may be charged, depending on the store's location within the Captive Market. This supplemental fee, along with any additional fees required by state, county, or other government agencies, is determined solely by Aplus based on factors such as historical store performance, sales volume, the purchase price of the store, and the value of its goodwill.
For prospective franchisees, this means the initial franchise fee may not be fixed and could vary based on the specific location, market conditions, and the franchisee's existing business relationships with Aplus. It is important to discuss these potential modifications and supplemental fees with Aplus during the franchise application process to understand the total initial investment required.