Who is responsible for covering the travel costs, room and board, and salaries/wages for the new Designated Manager when attending the initial training program for Aplus?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
After beginning operations, should Franchisee name a new Designated Manager, Franchisee must notify Franchisor of the identity of the new Designated Manager and the new Designated Manager must complete the initial training program to Franchisor's satisfaction within sixty (60) days of being named. The new Designated Manager may attend the initial training program at Franchisor's then-current fee for providing training to a new Designated Manager, and Franchisor may require Franchisee to pay other costs related to the training. Franchisee shall be responsible for all travel costs, room and board and employees' salaries or wages incurred in connection with the new Designated Manager's attendance at such training.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee is responsible for covering the expenses associated with training a new Designated Manager. Specifically, the franchisee must cover all travel costs, room and board, and the Designated Manager's salary or wages while they attend the initial training program. This applies when a franchisee names a new Designated Manager after beginning operations. The new manager must complete the initial training program to Aplus's satisfaction within 60 days of being appointed.
This requirement means that franchisees need to budget not only for the training fee, if any, but also for all associated costs like transportation, lodging, and the manager's regular pay. These costs can add up quickly, especially if the training location is far from the franchise location or if the training period is extended. The FDD states that the new Designated Manager may attend the initial training program at Aplus's then-current fee for providing training to a new Designated Manager, and Aplus may require the franchisee to pay other costs related to the training.
Franchisees should consider these potential expenses when planning for staff changes and factor them into their operating budget. It is also important to confirm the current training fee and any other potential costs with Aplus to accurately estimate the financial impact of training a new Designated Manager. Being prepared for these costs can help ensure a smooth transition when replacing a manager and maintain compliance with Aplus's training requirements.
Furthermore, franchisees should inquire about the possibility of training the new Designated Manager with a franchisee who agrees to provide such training, as mentioned in Section 8.3, which could potentially reduce costs compared to attending the initial training program at Aplus's headquarters or a designated regional office. This alternative training arrangement may offer a more cost-effective solution while still meeting Aplus's training standards.