Under what condition is an Aplus franchisee not responsible for paying Store Facilities Rent?

According to Aplus's 2024 Franchise Disclosure Document, a franchisee is not responsible for Store Facilities Rent under specific conditions. As long as the Aplus Franchise Agreement is in effect, the franchisee is not responsible for paying Store Facilities Rent or a store facilities security deposit. Instead, the franchisee is responsible for paying the Royalty Fee as outlined in the agreement.

However, if the Aplus Franchise Agreement is not in effect, the franchisee is obligated to pay Store Facilities Rent. This rent is due on or before the tenth day of the month following the month in which sales were made. The minimum Store Facilities Rent is detailed in Section 1.03 of the agreement and is paid in advance on or before the tenth day of each month. In addition to this minimum, the franchisee must also pay seventeen percent of their total monthly Store Gross Sales.

Gross Sales are calculated by Aplus using an average of the total Gross Sales for the twelve-month period immediately preceding the termination of the Aplus Franchise Agreement. For periods less than a full calendar month, the advance Store Facilities Rent will be prorated on a daily basis. This ensures that rent is appropriately adjusted for partial months of operation or non-operation under the franchise agreement.