What venues are included in the definition of 'Captive Market' for an Aplus franchise?

According to Aplus's 2024 Franchise Disclosure Document, a 'Captive Market' refers to specific venues that serve a limited or controlled customer base. These venues include, but are not limited to, turnpikes, thruways, toll roads, airports, travel plazas, arenas, convention centers, or military bases. Additionally, venues where food and/or beverage service rights are contracted to a third party are also considered captive markets.

For a prospective Aplus franchisee, understanding this definition is crucial because the location of their Aplus store within a captive market can affect the fees they are subject to. The FDD states that Leased APLUS Stores or Non-Leased APLUS Stores may be located in a Captive Market, which may result in additional fees for the franchisee. Attachment 1 to the Franchise Agreement further amends the terms for Aplus stores located in Captive Markets.

Operating in a captive market can present both opportunities and challenges. The built-in customer base can provide a steady stream of revenue, but the franchisee may also face restrictions or additional costs associated with operating in these specialized locations. It is important for potential franchisees to carefully review Attachment 1 of the Franchise Agreement to fully understand the financial implications and operational requirements of running an Aplus store in a captive market venue.