How much is the standard Transfer Fee for an Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Development Fee | $15,000 + ($7,500 * Number of APLUS Stores) | At time of signing the Development Agreement | You will pay the remaining initial franchise fee upon signing the second and each subsequent franchise agreement. |
| Transfer Fee – Convenience of Operation | $1,500 | Before transfer | Payable if you are an individual transferring to a business entity for convenience of operation, or if your Owners are transferring among themselves a minority ownership interest to one or more third parties. |
| Transfer Fee – Third Party | $15,000 plus $1,500 for each remaining APLUS Store to be developed | Before transfer | Payable if you are assigning your interest in the development agreement, or your Owners are transferring a controlling interest. |
| Assignment of Franchise Rights | $2,500 | Before signing the Franchise Agreement | Payable only if you assign your right to enter into a franchise agreement to an affiliate. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Monthly 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 applies instead of the regular Royalty Fee. |
| Alcoholic Beverages Assessment | 1% of Gross Sales | Monthly | Due only if you are prohibited by regulation or statute from selling alcoholic beverages or otherwise chooses not to offer or cannot offer for sale alcoholic beverages. |
| Non-Compliance Fee | Additional 1% of Gross Sales or actual costs of enforcement, whichever is higher | Monthly | Due if you receive two default notices in any 12-month period. |
| Rent2 | $5,000 to $34,000 | Monthly or Semi Monthly as required by lease terms | |
| Marketing Fee | Up to $1,500 or 2% of Gross Sales (whichever is less), currently $750 | Monthly on the 10th | |
| Kerosene Fee (if applicable) | $250 per month | Monthly | Not all APLUS Stores are allowed to offer kerosene for resale to the public. |
| Transfer Fee3 | Percentage of Transfer Consideration | When you submit your request for transfer | 100% transfer of all businesses operated at the APLUS Store. |
| Transfer Fee (for convenience)4 | $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. |
- Note 3: Transfer Consideration means the total transfer price for assignment for all businesses conducted at the APLUS Store, less the amount of consideration paid for the transfer of inventories at cost and equipment at fair market value.
- (a) If the capital we spent on major projects at the premises within the past 10 years prior to the transfer or assignment is equal to, or less than, $400,000, the transfer fee shall be the greater of 10% of the Transfer Consideration, or $15,000.
- (b) If the capital we spent on major projects at the premises within the past 10 years prior to the transfer or assignment is greater than $400,000, you shall pay a transfer fee as follows:
Note 3: With respect to any of the following types of transfer, the Transfer Fee shall be reduced:
- (1) Transfer from a sole proprietor to a Corporate Entity in which 100% of the shares or ownership interest of the Corporate Entity is held by the former sole proprietor.
- (2) Transfer to a Corporate Entity where there are only two Owners and you will be the 51% Owner.
- (3) Transfer of the minority stock of a Corporate Entity with multiple Owners with one Owner being the 51% majority Owner. One person must retain 51% ownership of the Corporate Entity.
- (4) The dissolution of a two-partner partnership or a two-Owner Corporate Entity resulting in one of
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the standard transfer fee depends on the circumstances of the transfer. If you are transferring the convenience of operation, the transfer fee is $1,500. However, if you are assigning your interest in the development agreement, or your Owners are transferring a controlling interest, the transfer fee is $15,000 plus $1,500 for each remaining Aplus store to be developed. For a 100% transfer of all businesses operated at the Aplus Store, the transfer fee is a percentage of the transfer consideration.
Specifically, if the capital Aplus spent on major projects at the premises within the past 10 years prior to the transfer or assignment is equal to, or less than, $400,000, the transfer fee shall be the greater of 10% of the Transfer Consideration, or $15,000. If the capital Aplus spent on major projects at the premises within the past 10 years prior to the transfer or assignment is greater than $400,000, you shall pay a transfer fee as outlined in the franchise agreement.
There is also a Transfer Evaluation Fee of $1,000 to cover Aplus's costs for evaluating the proposed transfer. Note that the transfer fee may be reduced in certain situations, such as a transfer from a sole proprietor to a wholly-owned corporation, a transfer to a corporate entity with only two owners where you will be the 51% owner, a transfer of minority stock in a corporate entity where one owner retains 51% ownership, the dissolution of a two-partner partnership, or a corporate name change.