What is the standard monthly Kerosene Fee for an Aplus store, if applicable?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
il LLC
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Monthly 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 applies instead of the regular Royalty Fee. |
| Alcoholic Beverages Assessment | 1% of Gross Sales | Monthly | Due only if you are prohibited by regulation or statute from selling alcoholic beverages or otherwise chooses not to offer or cannot offer for sale alcoholic beverages. |
| Non-Compliance Fee | Additional 1% of Gross Sales or actual costs of enforcement, whichever is higher | Monthly | Due if you receive two default notices in any 12-month period. |
| Rent2 | $5,000 to $34,000 | Monthly or Semi Monthly as required by lease terms | |
| Marketing Fee | Up to $1,500 or 2% of Gross Sales (whichever is less), currently $750 | Monthly on the 10th | |
| Kerosene Fee (if applicable) | $250 per month | Monthly | Not all APLUS Stores are allowed to offer |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if an Aplus store is permitted to offer kerosene for resale, the franchisee will be charged a monthly Kerosene Fee of $250. This fee is due monthly. However, not all Aplus stores are authorized to sell kerosene to the public, so this fee may not apply to every franchisee.
This fee is in addition to other fees such as the Royalty Fee, Alcoholic Beverages Assessment, Non-Compliance Fee, Rent, and Marketing Fee. It's important to note that this fee is specifically for stores that are allowed to sell kerosene, indicating that Aplus has specific regulations and approvals regarding the sale of this product.
A prospective franchisee should confirm whether the specific Aplus location they are considering is approved to sell kerosene. If so, they should factor this $250 monthly fee into their operating expenses. If the location is not approved for kerosene sales, this fee would not be applicable, but the franchisee would also miss out on any potential revenue from kerosene sales.