What is the non-refundable development fee for an Aplus Development Agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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Development Agreement
If we grant you multi-unit development rights to operate APLUS with or without a fueling station, you will sign our Development Agreement and pay us a non-refundable development fee ("Development Fee") equal to 100% of the initial franchise fee payable under the franchise agreement for the first APLUS Store (i.e., $15,000), plus 50% percent of the discounted initial franchise fee for each additional APLUS Store to be developed. For example, if you sign a development agreement for four APLUS Stores, you will pay a development fee of $37,500 [$15,000 + ($7,500 x 3) = $37,500].
When you sign the Development Agreement, you also will sign a franchise agreement for the first APLUS Store and/or SUNOCO fueling station, and we will credit part of your development fee payment to fully satisfy the initial franchise fee due under that agreement. As you get ready to develop additional APLUS Stores and/or SUNOCO fueling stations, you will sign our then-current form of franchise agreement and/or fueling station agreement. The terms of our then-current form of franchise agreement may be materially different than the terms of our current franchise agreement, but the initial franchise fee will be locked in at the rate described above. When you sign the second or subsequent franchise agreements, we will credit $7,500 of your development fee payment toward payment of the initial franchise fee due under the franchise agreement, and you
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the non-refundable development fee for a Development Agreement is calculated based on the number of Aplus stores a franchisee commits to developing. The fee is 100% of the initial franchise fee for the first store, which is $15,000, plus 50% of the discounted initial franchise fee for each additional store.
For example, if a franchisee signs a development agreement for four Aplus stores, the development fee would be $37,500. This is calculated as $15,000 for the first store, plus $7,500 for each of the three additional stores ( $15,000 + ($7,500 x 3) = $37,500).
When the Development Agreement is signed, a franchise agreement for the first Aplus store is also signed, and the initial franchise fee is satisfied by crediting part of the development fee. For subsequent franchise agreements, $7,500 of the development fee is credited towards the initial franchise fee, and the franchisee pays the remaining $7,500 balance. This structure incentivizes multi-unit development while ensuring Aplus receives compensation for granting development rights.