When signing the Development Agreement for Aplus, what other agreement must I also sign?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
,000 + ($7,500 x 3) = $37,500].
When you sign the Development Agreement, you also will sign a franchise agreement for the first APLUS Store and/or SUNOCO fueling station, and we will credit part of your development fee payment to fully satisfy the initial franchise fee due under that agreement. As you get ready to develop additional APLUS Stores and/or SUNOCO fueling stations, you will sign our then-current form of franchise agreement and/or fueling station agreement. The terms of our then-current form of franchise agreement may be materially different than the terms of our current franchise agreement, but the initial franchise fee will be locked in at the rate described above. When you sign the second or subsequent franchise agreements, we will credit $7,500 of your development fee payment toward payment of the initial franchise fee due under the franchise agreement, and you
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if you are granted multi-unit development rights, you must sign a Development Agreement and also a franchise agreement for the first Aplus store and/or SUNOCO fueling station. Part of the development fee you pay will then be credited to satisfy the initial franchise fee required under that franchise agreement.
As you prepare to develop additional Aplus stores and/or SUNOCO fueling stations, you will be required to sign Aplus's then-current form of franchise agreement and/or fueling station agreement. It is important to note that the terms of these subsequent franchise agreements may differ significantly from the terms of the initial franchise agreement. However, the initial franchise fee will remain at the rate described in the Development Agreement.
When signing the second or subsequent franchise agreements, Aplus will credit $7,500 of your development fee payment toward the initial franchise fee due under the franchise agreement. You will then be responsible for paying the remaining $7,500 balance. This structure allows Aplus to secure commitments for multiple locations while providing a mechanism to offset initial franchise fees as each location is developed.