When is the Transfer Fee due for an Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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Development Agreement
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Development Fee | $15,000 + ($7,500 * Number of APLUS Stores) | At time of signing the Development Agreement | You will pay the remaining initial franchise fee upon signing the second and each subsequent franchise agreement. |
| Transfer Fee – Convenience of Operation | $1,500 | Before transfer | Payable if you are an individual transferring to a business entity for convenience of operation, or if your Owners are transferring among themselves a minority ownership interest to one or more third parties. |
| Transfer Fee – Third Party | $15,000 plus $1,500 for each remaining APLUS Store to be developed | Before transfer | Payable if you are assigning your interest in the development agreement, or your Owners are transferring a controlling interest. |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the due date for the transfer fee depends on the type of transfer. If you are transferring 100% of all businesses operated at the Aplus store, the $15,000 transfer fee is due when you submit your request for transfer. If the transfer is for convenience, the $1,500 transfer fee is also due when you submit your request for transfer.
For a transfer involving the convenience of operation, specifically when an individual transfers to a business entity or when owners transfer minority ownership among themselves, the $1,500 fee is due before the transfer. If the transfer involves assigning your interest in the development agreement or transferring a controlling interest, the fee is $15,000 plus $1,500 for each remaining Aplus store to be developed, and it is also due before the transfer.
Prospective Aplus franchisees should note that there are different types of transfer fees, and the timing of payment depends on the specific circumstances of the transfer. It is important to carefully review the conditions under which each fee applies to ensure compliance and avoid potential delays in the transfer process. Additionally, Aplus also charges a Transfer Evaluation Fee of $1,000 when billed to cover their costs for evaluating the proposed transfer.