What is the total estimated initial investment range for a leased Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ESTIMATED INITIAL INVESTMENT CAPTIVE MARKET
| Type of Expenditure 1 | Leased APLUS Store | Non-Leased APLUS Store | Method of Payment | When Due | To Whom Payment Is To Be Made | |----------------------------------------------------|------------------------------|------------------------------|----------------------|-----------------------------------------|-------------------------------------| | Initial Franchise Fee | $15,000 to $300,000 | $15,000 to $300,000 | Lump Sum | At signing of Franchise Agreement | Us | | Rent (Three months) 2 | $15,000 to $ 248,000 | N/A | As Arranged | As Arranged | Us | | Construction | N/A | $360,000 to $ | As | As Arranged | Suppliers and Vendors | | Costs 3 | | 1,045,000 | Arranged | | | | Permitting Costs | N/A | $20,000 to $ 80,000 | As Arranged | As Arranged | Issuing Agencies | | Architectural | N/A | $20,000 to $ | As | As Arranged | Architect | | Drawings 4 | | 60,500 | Arranged | | | | Existing Conditions AutoCAD Drawing 5 | N/A | $3,200 | As Arranged | As Arranged | Designated Vendor | | Engineering Project | N/A | $5,300 | As | As Arranged | Designated | | Management Fee 6 | | | Arranged | | Vendor | | Store Fixtures and Equipment 7 | $80,000 to $ 240,000 | $205,000 to $ 282,000 | As Arranged | Prior to Project Design | Vendors and/or Us | | Interior Graphics 8 | N/A | $12,000 to $ 51,000 | As Arranged | As Arranged | Vendors and/or Us | | Exterior Graphics 8 | N/A | $16,000 to $ 46,000 | As Arranged | As Arranged | Vendors and/or Us | | Initial Opening | $40,000 to $ | $40,000 to $ 121,000 | As | As Arranged | Vendors | | Inventory 9 | 121,000 | | Arranged | | | | Permits (Business) | $2,000 to $ | $2,000 to $ | As | As Arranged | Issuing | | | 11,000 | 11,000 | Arranged | | Agencies | | Permits | $500 to $ | $500 to $ | As | As Arranged | Issuing | | (Beer/Wine) 10 | 12,000 | 12,000 | Arranged | | Agencies | | Technology Fee | $990 to $1,800 | $990 to $1,800 | As Arranged | As Arranged | Designated supplier and/or | Sunoco Retail LLC
| Type of Expenditure 1 | Leased APLUS Store | Non-Leased APLUS Store | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Us | |||||
| Uniforms | $150 to $ 1,100 | $150 to $ 1,100 | As Arranged | As Arranged | Vendors |
| Insurance (Three months) | $3,750 to $ 6,050 | $3,750 to $ 6,050 | As Arranged | As Arranged | Insurance Carrier |
| Collateral Deposit 11 | $10,000 to $20,000 | $10,000 to $20,000 | Lump Sum | Prior to opening | Us |
| Misc. Supplies | $500 to $ 1,700 | $500 to $ 1,700 | As Arranged | As Arranged | Vendors |
| Initial Grand | $ 3,400 | $ 3,400 | As | As Arranged | Vendors |
| Opening | Arranged | ||||
| Proprietary Items | $5,000 to $15,000 | $5,000 to $15,000 | As Arranged | As Arranged | Vendors |
| Training Expense Travel/Lodging | $2,500 to $ 5,800 | $2,500 to $ 5,800 | As Arranged | As Arranged | Transportation, Hotels, Stores Vendors |
| Additional Funds 12 | $54,000 to $ 111,000 | $54,000 to $ 111,000 | As Arranged | As Necessary | Employees, suppliers, and others |
| TOTALS | $232,590 to $ 1,097,850 | $779,090 to $ 2,182,850 |
NOTES:
Note 1: The amounts you pay are typically non-refundable.
Note 2: If you do not own your own premises, you will pay rent to us or a third-party landlord. Rent for all franchises will vary based on numerous factors including but not limited to the premises' fair market value, location, traffic patterns, and applicable taxes. The rent for Leased APLUS Stores is also based on our incurred cost related to the conversion of the location. The rent of Non-Leased APLUS Stores will depend on the previously indicated factors as well as your ability to negotiate favorable terms with the landlord.
Note 3: Construction costs will vary by type of franchise and whether you choose to convert an existing location or build a new one:
- (a) CONVERSIONS: These estimates assume your existing location that you are converting to an APLUS Store is in good condition. If you lease from a third-party, these estimates do not include any landlord allowances. We will provide you with our image and equipment standards. Engineering permits may increase your cost by an additional $20,000 or more.
- (b) NEW/REBUILT: These estimates are based on an APLUS Store of approximately 3,000 square feet.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–33)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the total estimated initial investment for a leased Aplus store ranges from $230,090 to $699,400. This investment includes various expenses such as the initial franchise fee, rent for three months, store fixtures and equipment, initial opening inventory, permits, technology fees, uniforms, insurance, collateral deposit, miscellaneous supplies, initial grand opening expenses, proprietary items, training expenses, and additional funds for the first three months of operation.
The initial franchise fee can range from $15,000 to $300,000, while three months' rent is estimated to be between $15,000 and $248,000. Store fixtures and equipment are a significant cost, estimated between $80,000 and $240,000. The initial opening inventory costs between $40,000 and $121,000. Additional costs include business and beer/wine permits ranging from $500 to $12,000, a technology fee from $990 to $1,800, uniforms from $150 to $1,100, and insurance (for three months) from $3,750 to $6,050. A collateral deposit of $10,000 to $20,000 is also required.
Other expenses include miscellaneous supplies ($500 to $1,700), initial grand opening expenses ($3,400), proprietary items ($2,500 to $6,050), and training expenses including travel and lodging ($2,500 to $5,800). Aplus also requires franchisees to have additional funds for operating expenses, estimated between $54,000 and $111,000. These funds are intended to cover expenses such as rent, utilities, and employee salaries during the initial months of operation.
Prospective franchisees should carefully review these estimates with a business advisor, as the actual costs may vary based on factors such as the location and condition of the facility, and the franchisee's management capabilities. It is also important to note that these are minimum estimates, and franchisees may need additional cash reserves to ensure smooth operations, especially if the business takes longer than expected to become profitable.