Can Aplus assign its rights or delegate the performance of its obligations under the Development Agreement to third parties without the Developer's prior written consent?

According to Aplus's 2024 Franchise Disclosure Document, Aplus has the right to assign its rights or delegate the performance of any portion or all of its rights or obligations under the Development Agreement to third parties without the developer's prior written consent. These third parties can include designees, an area representative (if applicable), or independent contractors that Aplus contracts with to perform these obligations.

If Aplus assigns its rights to receive any amount under the agreement to a third party, the developer is liable for compliance and must make payments directly to that third party. This means that as a developer, you may be dealing with different entities throughout the term of the agreement, and you must be prepared to fulfill your financial obligations to whomever Aplus designates.

This clause gives Aplus significant flexibility in managing its obligations and potentially introduces uncertainty for the developer, who must be prepared to work with different entities during the development process. It is a fairly standard practice in franchising to allow the franchisor to assign its rights, as it allows them to restructure their business or bring in specialized expertise. However, the franchisee should carefully consider the implications of this clause and ensure they are comfortable with the possibility of dealing with third parties.