What actions related to transferring control or assigning the Aplus franchise without approval can lead to termination?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
1.32 Assignment, Subletting, and Successor-in Interest
Assignment and Subletting
- (A) This Lease shall not be assigned in whole or in part by you nor shall your interest in the Premises or Loaned Equipment be assigned in whole or in part, either voluntarily or by operation of law, except with Sunoco's prior written consent. This Lease shall not be sublet in whole or in part by you nor shall your interest in the Premises or Loaned Equipment be sublet in whole or in part, either voluntarily or by operation of law. Any assignment or attempt to assign without Sunoco's prior written consent or any subletting or attempt to sublet shall result in immediate termination of your interest in and to this Lease, the Premises, and Loaned Equipment.
- (B) For purposes of this Section, reference to "Franchisee" or "Lessee" shall mean you, if you are a sole proprietor; if a partnership, all partners; if a corporation with two shareholders, both shareholders; or if a corporation with more than two shareholders, the majority shareholder named in Part 1 of this Lease. That person must be an officer or director as well as a majority shareholder.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchise agreement can be terminated immediately if the franchisee attempts to assign or sublet their interest in the premises or loaned equipment without prior written consent from Sunoco. This applies whether the assignment or subletting is done voluntarily or by operation of law.
This condition is particularly relevant because the Aplus franchise often involves a leased location from Sunoco, as indicated by the terms 'Leased APLUS Store' and references to 'this Lease.' The franchisee's rights and obligations regarding the lease are intertwined with the franchise agreement. Therefore, any unauthorized transfer of the lease can have serious repercussions on the franchise agreement.
The FDD specifies that 'Franchisee' or 'Lessee' refers to the individual if they are a sole proprietor, all partners if a partnership, both shareholders if a corporation with two shareholders, or the majority shareholder (who must also be an officer or director) if a corporation with more than two shareholders. This definition clarifies who is subject to the restrictions on assignment and subletting.
A prospective Aplus franchisee should carefully review the lease agreement and understand the conditions under which they can transfer or assign their interest in the premises. They should also be aware of Sunoco's right to refuse consent to any proposed transfer or assignment that would materially increase Sunoco's risk or burden. Failure to comply with these provisions could lead to immediate termination of the lease and, consequently, the franchise agreement.