When is the monthly Royalty Fee due for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ed by us.
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 monthly royalty fee is due on the 20th of each month. This applies to both standard royalty fees, which can be up to 4% of gross sales with a minimum monthly fee, and the royalty fees for captive market locations, which can be up to 15% of gross sales. The due date is the same for both types of Aplus franchise locations.
Specifically, the FDD states that the royalty fee is due "Monthly on the 20th of the month" and is "payable with the Royalty Fee". This means that Aplus franchisees must ensure that their royalty payments are submitted and received by Aplus by the 20th of each month to remain in compliance with the franchise agreement.
Missing the royalty fee due date could result in penalties or default notices from Aplus. It is important for prospective franchisees to understand this payment schedule and factor it into their financial planning. The consistent monthly due date allows franchisees to plan and budget accordingly, but requires strict adherence to avoid potential issues.