Under what conditions does Aplus charge a Failure to Open Fee?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
nsfer of |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| data to and from your APLUS Store. | |||
| Technology Fee | $330 to $600 | Monthly | This covers our providing to you required software licenses, access to our back-office system, helpdesk support, a website, e-mail set up, and email hosting for one email address. We reserve the right to reduce this fee, and upon written notice to you we may increase this fee. |
| Failure to Open Fee | Prorated Non Leased Minimum Monthly Royalty Fee per day for each calendar day you fail to open the APLUS Store for business | When billed | You must take possession and open the APLUS Store on the agreed upon commencement date. If you do not, we reserve the right |
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a Failure to Open Fee is charged if the franchisee does not take possession and open the Aplus store for business on the agreed-upon commencement date. The fee is a prorated amount of the Non-Leased Minimum Monthly Royalty Fee per day for each calendar day the store is not open.
This means that if an Aplus franchisee fails to open their store on the date specified in their agreement, they will incur a daily fee. This fee is calculated based on a portion of the minimum monthly royalty fee applicable to non-leased stores. The exact amount will depend on the specific royalty fee structure outlined in the franchise agreement and the number of days the store remains unopened past the commencement date.
This policy incentivizes franchisees to adhere to the agreed-upon opening schedule. Failing to do so results in a financial penalty, adding to the costs associated with delays in launching the Aplus business. Prospective franchisees should carefully review the terms of their franchise agreement to understand the specific commencement date and the calculation of the Non-Leased Minimum Monthly Royalty Fee to be fully aware of the potential costs associated with failing to open on time.