Under what condition is the Alcoholic Beverages Assessment fee due for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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Non-Leased APLUS Store
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee1 | Up to 4% of Gross Sales The difference between the actual monthly Royalty Fee paid and up to $1,000 ("Minimum Monthly Royalty Fee") | Monthly on the 20th of the month Monthly on the 20th day of the month payable with the Royalty Fee | |
| Royalty Fee (Captive Market Locations) | Up to 15% of Gross Sales The difference between the actual monthly Royalty Fee paid and up to $2,000 | Monthly on the 20th Monthly on the 20th day of the month payable with the Royalty Fee | For Captive Market locations, this increased Royalty Fee applies instead of the regular Royalty Fee. |
| Alcoholic Beverages Assessment | 1% of Gross Sales | Monthly | Due only if you are prohibited by regulation or statute from selling alcoholic beverages or otherwise chooses not to offer or cannot offer for sale alcoholic beverages. |
| Non-Compliance | Additional 1% of | Monthly | Due if you receive two default |
| Fee | Gross Sales |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the Alcoholic Beverages Assessment fee is due monthly and is equal to 1% of Gross Sales. This fee is only imposed if the franchisee is prohibited by regulation or statute from selling alcoholic beverages, or if the franchisee chooses not to offer alcoholic beverages for sale, or cannot offer alcoholic beverages for sale.
For a prospective Aplus franchisee, this means that if their location is unable to sell alcohol due to legal restrictions or their own business decision, they will be required to pay this additional assessment fee. This could impact the financial planning for the franchise, as it adds an extra cost that needs to be factored into the monthly expenses.
It is important for potential franchisees to understand the local regulations regarding alcohol sales in their area and to consider whether they intend to sell alcoholic beverages. This decision will directly affect whether they are subject to the Alcoholic Beverages Assessment fee, and they should discuss this with Aplus during their due diligence process.