How does Aplus oversee the marketing program, and how is the Marketing Fee utilized for the Aplus System?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
to franchisees. (Section 9.2. of the Franchise Agreement)
-
- Oversee the marketing program and utilize the Marketing Fee to administer the System-wide marketing, advertising, and promotion program. (Section 11.1. of the Franchise Agreement)
-
- Provide you from time to time with a list of recommended merchandise vendors, a list of designated products, and required merchandising specifications. (Section 13 of the Franchise Agreement)
-
- Provide you general advice and guidance during business hours regarding operation of your APLUS Store. (Section 14.1. of the Franchise Agreement)
-
- We reserve the right to establish maximum retail prices or promotional prices for certain convenience store products specific to the APLUS System. (Section 14.1. of the Franchise Agreement)
-
- Make periodic visits to your APLUS Store for the purposes of consultation, assistance, and guidance with respect to various aspects of operation and management of your APLUS Store, including merchandising and planogramming support. (Section 14.2. of the Franchise Agreement)
Area Representative
We retain the right to assign our rights or delegate the performance of any portion of our obligations under the Franchise Agreement to third party designee, an area representative (if applicable), or independent contractors with whom we contract to perform these obligations without the prior written consent from you. If we assign our right to receive any amount under the Franchise Agreement to any third-party. You are liable for all compliance and upon our notice to you, you must make all such payments directly to the designated third-party.
Advertising and Promotion
The media in which the advertising may be disseminated includes merchandising materials and programs (i.e. handbills, flyers, brochures, signs, point-of-sale, billboards, and high-rise signs), electronic media (i.e. television, radio, cable and Internet) outdoor, print, point-of-sale and sponsorship. The scope of the coverage of the media, if any, is local or regional and is determined at our sole discretion. All advertising is created in-house with the help of outside agencies.
Any advertising and promotions conducted by you independently of those conducted by us must be reviewed and approved by us prior to implementation and must be in accordance with our standards and specifications. Any request not approved within 30 days of submission will be deemed not approved. You must promptly discontinue the use of any materials, media, or method of distribution promptly upon receipt of written notice from us.
You will operate your franchised business so that it is clearly identified and advertised as APLUS Store. You will use the trademark "APLUS" and the other Marks which now or hereafter may form a part of the System, on all signs, suppliers, business cards, uniforms, advertising materials, Technology platforms, signs and other articles in the identical combination and manner as we may prescribe in writing and you will supply to us samples and photographs of the same upon our request. You will comply with all trademark, trade name, service mark and copyright notice marking requirements and you will supply to us samples or photographs upon our request.
Marketing Fee
Each month you are required to contribute up to $1,500 or 2% of Gross Sales, whichever is less, which we call the Marketing Fee. Currently all franchisees contribute $750 per month. The majority of our company operated stores (the exceptions being of two small kiosks) pay the Marketing Fee payments on the same basis as franchisees.
We may use Marketing Fee monies, in our sole discretion, to direct all advertising programs, and we have exclusive control over the creative concepts and content of these programs, advertising placement decisions, and the allocation of Marketing Fee contributions to production, placement, and other costs.
We will not use Marketing Fee contributions for creating or placing any advertisement that is principally a solicitation for new franchisees, but may include in all advertising prepared using Marketing Fee contributions (including Internet advertising) information concerning franchise opportunities, and a portion of Marketing Fee contributions may be used to create and maintain one or more pages on our Website devoted to advertising franchise opportunities and identifying and screening inquiries and applications submitted by franchise candidates.
We have the right to reimburse ourselves for our costs of personnel and other administrative costs associated with providing services to the Marketing Fee, and we may use Marketing Fee contributions to defray our reasonable administrative costs and overhead incurred in connection with activities reasonably related to the Marketing Fee.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, AND TRAINING (FDD pages 40–47)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus oversees the marketing program and utilizes the Marketing Fee to administer the System-wide marketing, advertising, and promotion program. Each month, franchisees are required to contribute up to $1,500 or 2% of Gross Sales, whichever is less, as a Marketing Fee. Currently, all franchisees contribute $750 per month. Aplus may use these Marketing Fee monies, in its sole discretion, to direct all advertising programs, and it has exclusive control over the creative concepts and content of these programs, advertising placement decisions, and the allocation of Marketing Fee contributions to production, placement, and other costs. The advertising media may include merchandising materials, electronic media, outdoor advertising, print, point-of-sale materials, and sponsorships. All advertising is created in-house with the help of outside agencies.
Aplus will not use Marketing Fee contributions for creating or placing any advertisement that is principally a solicitation for new franchisees, but may include information concerning franchise opportunities in all advertising prepared using Marketing Fee contributions. Aplus has the right to reimburse itself for its costs of personnel and other administrative costs associated with providing services to the Marketing Fee, and it may use Marketing Fee contributions to defray its reasonable administrative costs and overhead incurred in connection with activities reasonably related to the Marketing Fee.
The Marketing Fee is not a trust or escrow, and neither Aplus nor its affiliates have any fiduciary obligation for administering the Marketing Fee or for any other reason, and there is no requirement that the Marketing Fee monies be audited. Aplus does not provide an accounting on how Marketing Fee monies are spent. However, most of the Marketing Fee monies are spent in the year in which they accrue, and the remaining amount is carried over to the following year. Aplus spends and/or makes available Marketing Fee monies for each APLUS Store operated by franchisees, but it has no obligation to ensure that expenditures from the Marketing Fee monies will affect any geographic area are or will be proportionate or equivalent to the contributions to the APLUS Stores operating in that geographic area. Aplus also has no obligation to ensure that any APLUS Store will benefit directly or in proportion to its Marketing Fee contribution or from the development of advertising, business development and marketing materials and/or programs, the placement of advertising or otherwise.
Any advertising and promotions conducted by franchisees independently of those conducted by Aplus must be reviewed and approved by Aplus prior to implementation and must be in accordance with Aplus's standards and specifications. Any request not approved within 30 days of submission will be deemed not approved. Franchisees must promptly discontinue the use of any materials, media, or method of distribution promptly upon receipt of written notice from Aplus. Franchisees will operate their franchised business so that it is clearly identified and advertised as APLUS Store and will use the trademark "APLUS" and the other Marks which now or hereafter may form a part of the System, on all signs, suppliers, business cards, uniforms, advertising materials, Technology platforms, signs and other articles in the identical combination and manner as Aplus may prescribe in writing and franchisees will supply to Aplus samples and photographs of the same upon request. Franchisees will comply with all trademark, trade name, service mark and copyright notice marking requirements and will supply to Aplus samples or photographs upon request.