Under what conditions will Aplus charge a Failure to Open Fee, and how is this fee calculated?

According to Aplus's 2024 Franchise Disclosure Document, a Failure to Open Fee may be charged if the franchisee does not take possession and open the Aplus store on the agreed-upon commencement date. The amount of the fee depends on whether the store is leased or non-leased.

For leased Aplus stores, the Failure to Open Fee is calculated as a prorated amount of the Minimum Monthly Royalty Fee per day for each calendar day the franchisee fails to open the Aplus store for business. For non-leased Aplus stores, the Failure to Open Fee is calculated as a prorated amount of the Non-Leased Minimum Monthly Royalty Fee per day for each calendar day the franchisee fails to open the Aplus store for business.

This fee serves as a penalty for not adhering to the agreed-upon opening date, incentivizing franchisees to meet their obligations and commence operations as scheduled. The fee is billed to the franchisee. Prospective franchisees should carefully review their franchise agreement to understand the specific commencement date and potential implications of failing to meet this deadline.