For Aplus retail locations where the Partnership holds inventory, including commission agent locations, what do motor fuel sales and motor fuel cost of sales include?

According to Aplus's 2024 Franchise Disclosure Document, for retail locations where the Partnership holds inventory, including commission agent locations, motor fuel sales and motor fuel cost of sales include motor fuel taxes. The FDD indicates that these amounts totaled $274 million for the year ended December 31, 2023, $285 million for the year ended December 31, 2022, and $332 million for the year ended December 31, 2021.

This means that when Aplus reports its revenue and expenses related to fuel at these specific retail locations, the figures include the motor fuel taxes collected from customers. These taxes are then remitted to governmental agencies either directly by Aplus or through its suppliers. This accounting practice provides a more comprehensive view of the gross sales and costs associated with motor fuel at these locations.

For a prospective Aplus franchisee, this is important to understand because it affects how the financial performance of these retail locations is presented. While the inclusion of motor fuel taxes in sales and cost of sales provides a more complete picture of the financial activity, it's essential to recognize that these taxes are pass-through amounts and do not represent actual profit for Aplus. Franchisees should focus on the net profit after these taxes and other expenses to accurately assess the profitability of their Aplus franchise.