What is the penalty for an Aplus franchisee's failure to operate the minimum required hours?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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| 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 |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
Based on the 2024 Aplus Franchise Disclosure Document, there is no mention of a specific penalty for failing to operate the minimum required hours. The document does outline various fees, including royalty fees, transfer fees, and a non-compliance fee, but none are directly tied to operating hours.
However, the absence of a specific penalty in the FDD does not necessarily mean there are no consequences. Aplus could potentially enforce minimum operating hours through other means, such as default notices or other contractual remedies outlined in the Franchise Agreement. The Non-Compliance Fee of an additional 1% of Gross Sales or actual costs of enforcement, whichever is higher, is due if you receive two default notices in any 12-month period.
Prospective Aplus franchisees should carefully review the Franchise Agreement and discuss the topic of required operating hours and potential penalties for non-compliance with the franchisor. Understanding the franchisor's expectations and the potential ramifications of not meeting those expectations is crucial for making an informed investment decision.
It would be prudent for potential franchisees to ask Aplus directly about the enforcement of operating hour requirements and any penalties, direct or indirect, that could result from failing to meet those requirements. This information is essential for assessing the operational demands and potential financial risks associated with the franchise.