Within how many days of demand must an Aplus franchisee pay the Default Fee?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
am requirements for the store by, for example, over expanding the beer/wine segment at
the store. This additional charge is in addition to and without prejudice to Franchisor's remedies for a material default/termination under the terms of the applicable agreement.
3.11. Limited Refund
Franchisor may refund the Franchise Fee if it chooses not to execute this Agreement for any reason, or otherwise specified in Attachment 1.
3.12. Default Fee
If Franch
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee defaults on their agreement, Aplus has the option to impose a Default Fee. This fee can be up to $1,500 per default event, in addition to costs for re-inspections and compliance enforcement.
The franchisee is required to pay this Default Fee within three days of Aplus's demand. Late payments are subject to interest charges as outlined in Section 3.8 of the Aplus Franchise Agreement.
This means that if Aplus determines a franchisee is in default, they can levy a fee to cover the costs of addressing the issue. The franchisee must be prepared to pay this fee quickly (within 3 days) to avoid additional interest charges. This policy incentivizes franchisees to promptly correct any defaults to avoid incurring additional costs.