When is the monthly royalty fee due for a non-leased Aplus store?
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 monthly royalty fee for both standard and captive market locations is due on the 20th of each month. Specifically, the royalty fee is payable on the 20th day of the month. For a standard Aplus store, 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 structure differs based on the store's location type (standard vs. captive market). Aplus franchisees should understand which royalty fee structure applies to their specific location. The FDD also mentions additional fees, such as an Alcoholic Beverages Assessment (1% of gross sales, if applicable) and a Non-Compliance Fee (additional 1% of gross sales, if applicable), which are also due monthly.
Prospective Aplus franchisees should carefully review Item 6 of the FDD to fully understand all applicable fees and their due dates. Understanding the royalty fee structure and other potential fees is crucial for managing the financial aspects of the franchise. Franchisees should also inquire about any potential changes to these fees and their impact on their business operations.