Is there a limit to the number of Aplus stores a developer can open or operate?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You may, subject to the terms and conditions of this Agreement and with Franchisor's prior written consent, which may be withheld in its sole discretion, develop more than the total minimum number of Stores which you are required to develop during any Development Period.
Any Store developed in excess of the minimum number of Stores required to be developed shall be applied to satisfy your development obligation during the next succeeding Development Period, if any.
Notwithstanding the above, you shall not open or operate more than the cumulative total number of Stores you are obligated to develop under the Development Schedule.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, while developers can develop more than the minimum number of stores required during a development period with Aplus's consent, they cannot exceed the cumulative total number of stores they are obligated to develop under the Development Schedule. This means that while a developer can accelerate their development, they are ultimately limited to the total number of stores outlined in their agreement.
The Development Schedule, outlined in Attachment B of the Development Agreement, specifies the development rights and obligations of the developer. The developer must adhere to this schedule, acknowledging that time is of the essence. Failure to meet the development schedule or the timeframe for replacing closed stores constitutes a material breach of the agreement.
This arrangement provides Aplus with a controlled expansion strategy, ensuring that developers meet their committed targets without overextending themselves or the market. For a prospective developer, this means careful planning and due diligence are crucial to ensure the Development Area can support the number of stores they are obligated to develop. The FDD emphasizes that Aplus makes no guarantees about the suitability of the Development Area to support the required number of stores, placing the onus on the developer to assess the market potential.