Who bears the expenses incurred by Aplus in connection with determining whether to approve an item, service, or supplier proposed by the franchisee?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1.4. Notwithstanding anything contrary in this Agreement, Franchisor has the right to review from time to time its approval of any items or suppliers. Franchisor may revoke its approval of any item, service or supplier at any time by notifying Franchisee and/or the supplier. Franchisee shall, at its own expense, promptly cease using, selling or providing any items or services disapproved by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, the franchisee is responsible for the expenses associated with ceasing to use, sell, or provide any items or services that Aplus has disapproved. Specifically, if Aplus revokes its approval of any item, service, or supplier, the franchisee must promptly stop using, selling, or providing the disapproved items or services at their own expense.
This means that if a franchisee proposes a new item, service, or supplier that Aplus initially approves but later revokes, the franchisee bears the cost of discontinuing its use. These costs could include disposal of inventory, termination of service contracts, or any other expenses incurred as a result of the disapproval.
This provision highlights the importance of franchisees carefully considering the potential costs associated with changes in approved items, services, or suppliers. It also underscores the need for franchisees to maintain open communication with Aplus regarding any proposed changes to ensure compliance and minimize potential financial burdens.