What actions are prohibited concerning Aplus customers after I cease to be an Owner?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
For a two-year period after I cease to be an Owner (or two years after termination or expiration of the Development Agreement, whichever occurs first) and if I am in default of the Development Agreement, I will not:
(a) Divert or attempt to divert any present or prospective customer of the APLUS Store to any competitor or do anything to harm the goodwill associated with the Marks and the System; or
(b) Own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any interest in (as owner or otherwise) or relationship or association with any Competitive Business, and (a) is, or is intended to be, located within the former Development Area; or (b) within a 25-mile radius of any APLUS Store in existence or under development at the time of such expiration, termination or transfer.
The obligations described in this Section 6 shall be tolled during any period of noncompliance and shall exclude any Competitive Business already open for business to the public at the time of expiration or termination of the Development Agreement.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, for a two-year period after you cease to be an Owner and if you are in default of the Development Agreement, you are restricted from certain actions related to Aplus customers and competitive businesses. This two-year period starts after you cease to be an Owner or two years after the termination or expiration of the Development Agreement, whichever comes first.
Specifically, you cannot divert or attempt to divert any present or prospective customer of the Aplus Store to any competitor. Additionally, you are prohibited from doing anything that could harm the goodwill associated with the Aplus Marks and the System.
Furthermore, during this two-year period, you cannot own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any interest in any Competitive Business. This restriction applies if the Competitive Business is located within the former Development Area or within a 25-mile radius of any Aplus Store in existence or under development at the time of your expiration, termination, or transfer. The obligations are suspended during any period of noncompliance and do not apply to any Competitive Business already open to the public at the time of the Development Agreement's expiration or termination.