What does 'Notice of Readiness' mean in the context of opening an Aplus franchise?

According to Aplus's 2024 Franchise Disclosure Document, a 'Notice of Readiness' is the formal communication from Aplus to the franchisee confirming that the premises for the Aplus store are ready for the franchisee to use and occupy. This notice also establishes the Commencement Date for the franchise agreement.

This is a critical point in the franchise process because the Commencement Date triggers several obligations for the franchisee. According to section 5.6, the franchisee must take possession of the Aplus store and open for business by the Commencement Date. Failure to do so can result in Aplus collecting a prorated Minimum Royalty Fee per day for each day the store is not open. If the franchisee fails to open within thirty days after the Commencement Date, Aplus has the right to terminate the franchise agreement, retaining the entire Franchise Fee as compensation for services provided up to that point.

For a prospective Aplus franchisee, receiving the Notice of Readiness signals the start of a crucial countdown. It is essential to be fully prepared to take possession of the premises and commence operations immediately upon receiving this notice to avoid penalties or termination of the agreement. This includes having all staff trained, inventory stocked, and systems in place to begin serving customers.