When is the Transfer Fee for an Aplus franchise due?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
llected by us.
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 timing of transfer fee payments depends on the type of transfer. For a 100% transfer of all businesses operated at the Aplus Store, the $15,000 transfer fee is due when you submit your request for transfer. Similarly, the $1,500 transfer fee for convenience is due when you submit your request for transfer. The Transfer Evaluation Fee of $1,000 is due when billed, as this fee covers Aplus's costs for evaluating the proposed transfer.
For transfers related to the convenience of operation, the $1,500 fee is payable before the transfer if you are an individual transferring to a business entity, or if owners are transferring a minority ownership interest to third parties. If you are assigning your interest in the development agreement or your owners are transferring a controlling interest, the transfer fee is payable before the transfer. This fee is calculated as $15,000 plus $1,500 for each remaining Aplus Store to be developed.
Prospective Aplus franchisees should note the different types of transfers and their associated fees and payment schedules. Understanding these requirements is crucial for financial planning and ensuring compliance with the franchise agreement. It is also important to note that the transfer fee may be reduced under certain conditions, such as transfers to a wholly-owned corporation or in cases involving specific ownership structures. Franchisees should carefully review the conditions outlined in the FDD and consult with Aplus to determine the applicable transfer fee and due date for their specific situation.