table_specific

What is the Aplus transfer fee if the transfer occurs in year 4 since capital spending?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

shall pay a transfer fee as follows:

Years Since Capital Spending (Site Specific) Transfer Fee
Year 1 50% of the Transfer Consideration with a minimum of $15,000
Year 2 45% of the Transfer Consideration with a minimum of $15,000
Year 3 40% of the Transfer Consideration with a minimum of $15,000
Year 4 30% of the Transfer Consideration with a minimum of $15,000
Year 5 25% of the Transfer Consideration with a minimum of $15,000
Year 6 20% of the Transfer Consideration with a minimum of $15,000
Year 7 15% of the Transfer Consideration with a minimum of $15,000
Year 8+ 10% of the Transfer Consi

Source: Item 6 — OTHER FEES (FDD pages 16–28)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, the transfer fee is dependent on the number of years since capital spending on the site and is calculated as a percentage of the transfer consideration with a minimum amount. If a transfer occurs in year 4 since capital spending, the transfer fee is 30% of the transfer consideration with a minimum of $15,000.

"Transfer Consideration" is defined as the total transfer price for the assignment of all businesses conducted at the Aplus store, less the amount of consideration paid for the transfer of inventories at cost and equipment at fair market value. This means the transfer fee is based on the actual value of the business being transferred, not just a flat fee.

It's important to note that this transfer fee structure applies specifically to transfers related to the years since capital spending. Aplus also lists other transfer fees for different scenarios, such as a $1,500 fee for transfers made for convenience of operation (e.g., from an individual to a business entity) or a $15,000 fee for a 100% transfer of all businesses operated at the Aplus store. Prospective franchisees should carefully review all the conditions and types of transfer fees to understand which apply to their specific situation.

Additionally, the transfer fee may be reduced under certain conditions, such as a transfer from a sole proprietor to a wholly-owned corporation or other corporate entity. Franchisees should consult the full Aplus Franchise Disclosure Document and discuss these scenarios with the franchisor to fully understand the applicable transfer fees.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.