factual

What does the Project Management Fee for an Aplus store cover?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

Note 6: In return for the Project Management Fee, our designated vendor will provide other necessary design layouts, photographs, drawings, materials, and procurement and engineering support services. You are responsible for direct payment to our designated vendor for any services and/or products provided related to the construction/conversion period.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–33)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, the Project Management Fee covers specific services provided by a designated vendor during the construction or conversion phase of setting up a Non-Leased Aplus store. In return for the Project Management Fee, the designated vendor will provide design layouts, photographs, drawings, materials, and procurement and engineering support services.

However, it's important to note that while these services are included in the Project Management Fee, the franchisee is still responsible for directly paying the designated vendor for any services and/or products provided during the construction/conversion period. This means that while the fee covers the coordination and provision of these services, the actual costs of the services and materials are separate and must be paid by the franchisee.

For a Non-Leased Aplus store, the estimated Engineering Project Management Fee is $5,300, payable to the designated vendor. This fee is part of the initial investment required to set up the franchise. Prospective franchisees should budget accordingly and ensure they have sufficient capital to cover both the Project Management Fee and the direct costs of the related services and products during the construction or conversion phase.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.