What is the maximum amount of the Default Fee that Aplus can charge per event of default?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
am requirements for the store by, for example, over expanding the beer/wine segment at
the store. This additional charge is in addition to and without prejudice to Franchisor's remedies for a material default/termination under the terms of the applicable agreement.
3.11. Limited Refund
Franchisor may refund the Franchise Fee if it chooses not to execute this Agreement for any reason, or otherwise specified in Attachment 1.
3.12. Default Fee
If Franch
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee defaults on their agreement, Aplus has the discretion to impose a Default Fee. This fee can be up to $1,500 per event of default.
In addition to the Default Fee, Aplus can also charge the franchisee for the costs of re-inspections and the costs of enforcing compliance with the franchise agreement. The franchisee is required to pay the Default Fee within three days of demand from Aplus.
Any late payments of the Default Fee are subject to interest charges, as outlined in Section 3.8 of the franchise agreement. This means that in addition to the $1,500 Default Fee, re-inspection costs, and compliance enforcement costs, a franchisee may also incur interest charges for late payment of these fees.