What is the maximum amount for the Equipment and Construction Funding for an Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
h period |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| actual costs of enforcement, whichever is higher | |||
| Marketing Fee | Up to $1,500 or 2% of Gross Sales (whichever is less), currently $750 | Monthly on the 10th | |
| Equipment and Construction Funding2 | An amount that you and we agree, up to $150,000 | At the time of execution of the agreement | You pay us the agreed upon amount, which we will then spend on your behalf on required equipment for and construction of your APLUS Store. |
| Kerosene Fee (if applicable) | $250 per month | Monthly | Not all APLUS Stores are allowed to offer kerosene for resale to the public. |
| Transfer Fee | $15,000 | When you submit your request for transfer | 100% transfer of all businesses operated at the APLUS Store. |
| Transfer Fee (for convenience)3 | $1,500 | When you submit your request for transfer | |
| Transfer Evaluation Fee | $1,000 | When billed | We have the right to charge this fee to cover our costs for evaluating the proposed transfer. |
| Audit Fee (standard audit) | 6% of the underreported amount | When billed | |
| Audit Cost | All costs and expenses associated with the audit, plus amount of outstanding fees due, if any | When billed | Due if your books or records are missing or incomplete at the time of the audit; and/or if it is determined you underreported amounts by 5% or more. See Note 5. |
| Failure to Operate Minimum Hours | Additional 1% of Gross Sales per day until deficiency is cured | Monthly | Payable only if you fail to operate the APLUS Store in accordance with the hours designated in your franchise agreement any day during any calendar month, except for one holiday per year of your choosing, or unless you are prohibited by law. |
| Accounting System | Then-current fees charged by third parties plus our | Monthly | If you choose, you may take advantage of certain accounting systems that we may provide. |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the Equipment and Construction Funding program is an optional program where Aplus and the franchisee agree on an amount up to $150,000. This funding is intended to be used by Aplus on behalf of the franchisee for the required equipment and construction of the Aplus store.
This means that if a franchisee chooses to participate in this program, they will pay Aplus an agreed-upon amount, not exceeding $150,000, which Aplus will then use to procure the necessary equipment and manage the construction of the store. This can be beneficial for franchisees who prefer not to handle these aspects directly or who may lack experience in store build-out and equipment procurement.
It is important to note that this is an optional program, and the franchisee is not obligated to participate. The franchisee should carefully consider the terms of the Equipment and Construction Funding Agreement, as outlined in Attachment 7 of the Franchise Agreement, to fully understand the obligations and responsibilities of both parties. Franchisees should also ensure they understand what specific equipment and construction services are covered under the agreement and whether the agreed-upon amount is sufficient to cover all necessary costs.