What is the range of monthly rent for a leased Aplus store?
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. |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the monthly rent for a leased Aplus store can vary significantly. For a standard leased Aplus store, the rent ranges from $5,000 to $34,000 per month. However, for Captive Market APLUS Franchise locations, the monthly rent can range from $5,000 to $71,000.
The rent amount is influenced by factors such as the premises' fair market value, location, traffic patterns, and applicable taxes. This means franchisees in high-traffic or prime locations can expect to pay significantly higher rent than those in less desirable areas. The distinction between standard leased stores and Captive Market locations also plays a crucial role in determining the rent amount.
Prospective Aplus franchisees should carefully evaluate the location and market conditions of their potential store to accurately estimate their monthly rent expenses. Understanding the factors that influence rent, such as fair market value and traffic patterns, is essential for making informed financial decisions. Franchisees should also clarify with Aplus whether their location is considered a Captive Market, as this can substantially impact their rental costs.
It is important to note that the FDD specifies that rent can be paid monthly or semi-monthly, as required by the lease terms. This flexibility may help franchisees manage their cash flow, but it also necessitates careful review of the lease agreement to understand the specific payment schedule. Given the wide range in potential rent costs, thorough due diligence is critical for any prospective Aplus franchisee.