For an Aplus leased store, what is the estimated range for the initial inventory expenditure?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | | | | |
| Type of Expenditure 1 | Leased APLUS Store | Non-Leased APLUS Store (Conversion) | Non-Leased APLUS Store (New) | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|---|
| Interior | N/A | $12,000 to $ | $12,000 to $ | As Arranged | As Arranged | Vendors |
| Graphics 8 | 50,000 | 50,000 | and/or Us | |||
| Exterior | N/A | $16,000 to $ | $16,000 to $ 45,000 | As Arranged | As Arranged | Vendors |
| Graphics 8 | 45,000 | and/or Us | ||||
| Initial Opening | $40,000 to $ | $40,000 to $ 121,000 | $40,000 to $ | As Arranged | As Arranged | Vendors |
| Inventory 9 | 121,000 | 121,000 | ||||
| Permits (Business) | $2,000 to $ | $2,000 to $ | $2,000 to $ | As Arranged | As Arranged | Issuing |
| 11,000 | 11,000 | 11,000 | Agencies | |||
| Permits (Beer/Wine) 10 | $500 to $ | $500 to $ | $500 to $ | As Arranged | As Arranged | Issuing |
| 12,000 | 12,000 | 12,000 | Agencies | |||
| Technology Fee | $990 to $1,800 | $990 to $1,800 | $990 to $1800 | As Arra |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–33)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the estimated initial inventory expenditure for a leased Aplus store is $40,000 to $121,000. The specific amount depends on the size of the store.
The FDD also provides a breakdown of minimum inventory costs based on store size. For stores 1,299 square feet or less, the minimum inventory cost is $40,000. For stores 1,300 square feet or less, the minimum is $56,800. For stores 2,500 square feet or more, the minimum inventory cost is $69,400.
Prospective franchisees should note that these figures are estimates and the actual amount may vary. Aplus requires franchisees to maintain a minimum retail inventory corresponding to the store's size. It is important to carefully review these estimates with a business advisor to determine the appropriate inventory level and associated costs for your specific Aplus store.
The FDD indicates that these inventory costs are paid to vendors and are due as arranged. Franchisees should confirm payment schedules and vendor details during their due diligence process.