When is the initial franchise fee for an Aplus franchise payable?
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 the goodwill of the APLUS Store.
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 due when you sign the franchise agreement. The standard initial franchise fee is $15,000. However, this fee can range from $15,000 to $300,000 if you choose to operate your franchise in a Captive Market, with the specific amount determined by Aplus based on factors like store performance and goodwill.
Notably, the initial franchise fee is generally non-refundable once paid. However, there are exceptions: it is refundable if Aplus does not execute the franchise agreement for any reason or if Aplus is unable to fulfill certain obligations during the construction of a Leased APLUS Store. Otherwise, the fee is considered fully earned upon receipt.
For franchisees who enter into a Development Agreement for multiple Aplus stores, the payment schedule is slightly different. The development fee is equal to 100% of the initial franchise fee for the first store ($15,000), plus 50% of the initial franchise fee for each additional store. When signing the Development Agreement, a franchise agreement for the first store is also signed, and the development fee covers the initial franchise fee for that first store. For subsequent stores, $7,500 of the development fee is credited towards the initial franchise fee, and the franchisee pays the remaining $7,500 balance.