What is the standard initial franchise fee for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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Initial Franchise Fee
You will pay us an initial franchise fee of $15,000. The franchise fee is payable in full when you sign
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the franchise agreement. The initial franchise fee is refundable if we do not execute the franchise agreement for any reason, or if we are unable to timely fulfill certain obligations during construction of a Leased APLUS Store. The initial franchise fee is otherwise fully earned upon receipt and is nonrefundable.
The initial franchise fee is generally calculated uniformly for all franchisees, however we reserve the right to waive or modify the initial franchise fee in circumstances where the location proposed to be franchised has been operating as a convenience store under a different trade name/trademark, where the location proposed is in a particular area where there is a very limited amount of APLUS stores, where the franchisee is or is entering into a motor fuel business relationship with us or our affiliate or where the APLUS franchise operation is located in a Captive Market. In addition, we reserve the right to modify or reduce the franchise fee for multi-site franchisees.
If you choose to operate your franchise in a Captive Market, we may charge a supplemental franchise fee ("Supplemental Franchise Fee") ranging from $15,000 to $300,000 depending on the location of your APLUS Store within the Captive Market. You may pay additional fees to state, county, or other government agency for your right to operate in a Captive Market. The amount and applicability of such a fee is determined solely by us based on a number of factors, including, but not limited to, historical store performance, sales volume, the amount paid by us or an affiliate to purchase the APLUS Store and the value of the goodwill of the APLUS Store.
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the standard initial franchise fee is $15,000. This fee is due in full when the franchise agreement is signed. Generally, this fee is calculated uniformly for all franchisees. However, Aplus does reserve the right to waive or modify the initial franchise fee under certain circumstances. These circumstances include situations where the location has been operating as a convenience store under a different trade name, the location is in an area with a limited number of Aplus stores, the franchisee is entering into a motor fuel business relationship with Aplus or its affiliate, or the Aplus franchise is located in a Captive Market. Aplus also reserves the right to modify or reduce the franchise fee for franchisees who are developing multiple sites.
It is important to note that while the standard initial franchise fee is $15,000, there can be a supplemental franchise fee if the franchisee chooses to operate in a Captive Market. This supplemental fee can range from $15,000 to $300,000, depending on the location of the Aplus store within the Captive Market. This supplemental fee is determined solely by Aplus based on factors such as historical store performance, sales volume, the amount paid by Aplus or an affiliate to purchase the store, and the value of the store's goodwill.
The initial franchise fee is refundable if Aplus does not execute the franchise agreement or if Aplus is unable to fulfill certain obligations during the construction of a Leased Aplus Store. Otherwise, the initial franchise fee is fully earned upon receipt and is nonrefundable. This is a fairly standard practice in the franchise industry, as the initial fee covers Aplus's initial costs in setting up the franchise and providing initial support.