When is the Royalty Fee due for a leased Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ed by us.
Non-Leased APLUS Store
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee1 | Up to 4% of Gross Sales The difference between the actual monthly Royalty Fee paid and up to $1,000 ("Minimum Monthly Royalty Fee") | Monthly on the 20th of the month Monthly on the 20th day of the month payable with the 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 appli |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the Royalty Fee for both standard and Captive Market locations is due monthly on the 20th of the month. The payment is for the previous month's sales. The standard royalty is up to 4% of Gross Sales, with a minimum monthly royalty fee of $1,000. For Captive Market locations, the royalty fee is up to 15% of Gross Sales, with a minimum monthly royalty fee of $2,000.
It is important to note that the royalty fee is calculated based on Gross Sales, which has specific inclusions and exclusions. Gross Sales includes all revenue from the Aplus store, but excludes items such as refunds, lottery commissions, money order face value, ATM income, money order fees, prepaid product sales, excise taxes on cigarettes, car wash and automotive repairs, and proprietary SUNOCO food service businesses and convenience store product offerings from which no royalty is collected in accordance with the terms of the applicable participation agreement.
Prospective franchisees should carefully consider the royalty fee structure and how it may impact their profitability. Understanding the inclusions and exclusions from Gross Sales is crucial for accurate financial planning. Additionally, franchisees should be aware of the potential for higher royalty fees in Captive Market locations and factor this into their financial projections.