What is Attachment C to the Aplus Franchise Agreement, and how does it relate to ownership transfers?

According to Aplus's 2024 Franchise Disclosure Document, Attachment C to the Aplus Franchise Agreement is a list of current and former franchisees. While the document doesn't explicitly detail how Attachment C is amended, it indicates that if the franchisee is a business entity, the owners may transfer their ownership interests among each other or transfer a non-controlling interest to a third party. In such cases, Attachment C to the Development Agreement must be amended to reflect the new ownership.

Specifically, if a Business Entity's Owners transfer their ownership interests among each other, or transfer up to a Non-Controlling Interest in the Business Entity to one or more third parties, Attachment C to the Development Agreement must be amended to reflect the new ownership. Additionally, each new Owner must sign a Guaranty and Personal Undertaking in the form of Attachment D, and each previous and/or new Owner must sign a general release in favor of Aplus. Aplus also requires a $2,500 administrative fee for such transfers.

For any other transfers, including the sale or transfer of the agreement itself or the sale of a controlling interest in the franchisee (if the franchisee is a Business Entity), Aplus's prior written consent is required. This consent may be conditioned on various factors, and any transfer made without Aplus's prior written consent will be considered null and void and a material breach of the agreement. Therefore, Attachment C plays a role in tracking and documenting changes in ownership, particularly for non-controlling interest transfers, ensuring Aplus is aware of and approves changes in its franchisees' ownership structure.