Does Aplus reserve the right to require franchisees to purchase items and services through a buying group?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
During the term of your franchise agreement, we may implement a buying group in which your participation will be required. In connection with such buying group, you will be required to make up to 90% of your total inventory purchases and, separately, up to 90% of your cigarette purchases, both computed monthly at cost, from Approved Suppliers or Designated Specific Suppliers (the "Approved Vendor Purchase Requirement"). We will not credit any purchase toward your Approved Vendor Purchase Requirement unless the purchase is from an Approved Supplier or Designated Specific Supplier. The cost value used to calculate your percentage of inventory purchases and cigarette purchases from Approved Suppliers or Designated Specific Suppliers will only include the cost reflected on vendor invoices, and will exclude any allowances, rebates and discounts not reflected on vendor invoices. To count toward your Approved Vendor Purchase Requirement, the products must be ordered and paid for through our recommended method for ordering and paying that vendor.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus does reserve the right to require franchisees to make purchases through a buying group. Specifically, Aplus may implement a buying group during the term of the franchise agreement, and participation in this group will be mandatory for franchisees.
As part of this buying group requirement, franchisees may be required to purchase up to 90% of their total inventory and, separately, up to 90% of their cigarette purchases from Approved Suppliers or Designated Specific Suppliers. These percentages are calculated monthly based on the cost of the goods. Aplus will not credit any purchase toward the Approved Vendor Purchase Requirement unless the purchase is made from an Approved Supplier or Designated Specific Supplier.
The cost value used to calculate the percentage of inventory and cigarette purchases will only include the cost reflected on vendor invoices, excluding any allowances, rebates, and discounts not shown on these invoices. To ensure purchases count toward the requirement, products must be ordered and paid for through Aplus's recommended method for ordering and paying the vendor. This requirement ensures that Aplus can maintain quality control and consistency across all its stores, while also potentially leveraging better pricing and terms through collective buying power.