When are amounts due to Sunoco from an Aplus franchisee, due to indemnities and obligations, payable?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
nt (17%) of your total monthly Store Gross Sales (The term "Gross Sales" as used in this Lease shall have the meaning set forth in Section 1 of your APlus Franchise Agreement.) Sunoco will calculate your monthly Gross Sales by using an average of the total Gross Sales for the twelve (12) month period immediately preceding the termination of your APlus Franchise Agreement. For periods less than a full calendar month, such advance Store Facilities Rent shall be prorated on a daily basis. You shall not be responsible for payment of Store Facilities Rent or store facilities security deposit as long as the APlus Franchise Agreement is in effect and you are responsible for payment of the Royalty Fee thereunder.
Additional Charges
(D) If you fail to perform your obligations under this Lease, including payment of any charges or costs for which you are responsible pursuant to this Lease, Sunoco may in its discretion perform such obligations or pay such items. Such costs or payments shall be deemed additional charges that are due and payable to Sunoco within five (5) days from demand. At its option, Sunoco may also apply toward such costs and payments all or part of the Collateral Security Deposit as provided for in Section 2.04(B).
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, there are several instances where amounts are due to Sunoco. If a franchisee fails to perform their obligations under the lease, Sunoco may perform those obligations, and the costs are deemed additional charges. These additional charges are due and payable within five days of demand from Sunoco.
Additionally, amounts not received by Aplus on the due date, such as Royalty Fees, Marketing Fees, and Technology Fees, will be subject to interest charges at the highest rate allowed by applicable state law. Interest accrues from the date payment was due until payment is received in full. The franchisee is also responsible for all costs incurred by Aplus in collecting unpaid amounts, including reasonable collection or attorney fees.
Furthermore, if a franchisee accepts funding for equipment and construction and the Aplus Agreement is terminated for any reason before the end of its term, the franchisee must repay the unamortized Funded Amount to Sunoco. This repayment is in addition to any other rights or claims Sunoco may have due to the termination. Understanding these payment obligations and their due dates is crucial for prospective franchisees to manage their finances and avoid penalties or legal issues.