For a leased Aplus store, when is the royalty fee due?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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Non-Leased APLUS Store
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee1 | Up to 4% of Gross Sales The difference between the actual monthly Royalty Fee paid and up to $1,000 ("Minimum Monthly Royalty Fee") | Monthly on the 20th of the month Monthly on the 20th day of the month payable with the Royalty Fee | |
| Royalty Fee (Captive Market Locations) | Up to 15% of Gross Sales The difference between the actual monthly Royalty Fee paid and up to $2,000 | Monthly on the 20th Monthly on the 20th day of the month payable with the Royalty Fee | For Captive Market locations, this increased Royalty Fee appli |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the royalty fee for a leased Aplus store is due monthly on the 20th of the month. The amount of the royalty fee is up to 4% of Gross Sales, with a minimum monthly royalty fee of $1,000. For Captive Market locations, the royalty fee is up to 15% of Gross Sales, with a minimum monthly royalty fee of $2,000.
It is important to note that the royalty fee is calculated based on Gross Sales, which is defined as the total revenue from all sales of products and services at the Aplus store, with some exclusions. These exclusions include refunds or credits, lottery and other commissions, money orders, ATM income, money order fees, prepaid product sales, excise taxes on cigarettes, car wash and automotive repairs, and proprietary SUNOCO food service businesses and convenience store product offerings from which no royalty is collected in accordance with the terms of the applicable participation agreement.
Prospective franchisees should carefully review the definition of Gross Sales and the exclusions to understand how the royalty fee will be calculated. They should also be aware of the minimum monthly royalty fee and the potential for a higher royalty fee if they operate a Captive Market location. Understanding these fees and their due dates is crucial for managing the financial obligations of an Aplus franchise.