Besides the Premises, what other items are included in the lease from Aplus, such as underground storage tanks?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.11 Description of Property; Loaned Equipment; Trademarks
- (A) In consideration of your payment of the Monthly Fees required by Sections 1.03 and 1.04 and the performance of your other obligations set forth herein, Lessor hereby leases to you and you hereby lease from Lessor the Premises located at the address set forth in Section 1.01, together with all buildings, improvements, and appurtenances situated thereon or pertaining thereto (hereinafter collectively referred to as the "Premises"), except such portion of the Premises as Lessor designates now or in the future for the installation of and use as an Electronic Banking Machine(s) (such portion hereinafter referred to as the "ATM" site). The essential purpose of this Lease is for the Premises to be used as an APlus mini market or APlus Express and where applicable a service station selling Sunoco branded Motor Fuel(s). "Motor Fuel(s)" includes automotive gasoline usable as a motor vehicle fuel, excluding without explicit written approval of Sunoco the following: diesel fuel, kerosene, and fuels that are gaseous at standard temperature and pressure. The premises include underground storage tanks ("USTs") for Motor Fuels, related lines and connections, Motor Fuel dispensers, and other loaned personal property located thereon.
Loaned Equipment
(B) Sunoco loans to you, for the Term of this Lease, certain Motor Fuel equipment as more fully described in Section 1.04 of the Motor Fuel Supply Agreement and certain APlus Store equipment as more fully described in Item 7 of the APlus Franchise Disclosure Document for your particular size APlus Store (hereinafter collectively referred to as "Loaned Equipment") for use by you in operating your Sunoco APlus franchise. The Loaned Equipment is or will be installed on the Premises by Sunoco. The Loaned Equipment is subject to the same terms and conditions of this Lease applicable to the Premises. Lessor and you agree that Lessor, in its sole discretion, may replace any of the Loaned Equipment. You further agree not to remove or collateralize the Loaned Equipment from the Premises without prior written approval of Lessor.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the lease for the Premises includes not only the physical location but also several key components essential for operating an Aplus mini market, Aplus Express, or a service station selling Sunoco branded Motor Fuel(s). The leased premises specifically include underground storage tanks (USTs) for Motor Fuels, along with related lines and connections, Motor Fuel dispensers, and other loaned personal property situated on the premises.
Sunoco loans certain Motor Fuel equipment, as detailed in the Motor Fuel Supply Agreement, and Aplus Store equipment, as described in Item 7 of the Aplus Franchise Disclosure Document, for the franchisee's use. This loaned equipment is installed on the Premises by Sunoco and is subject to the same terms and conditions of the lease as the Premises itself. Sunoco retains the discretion to replace any of the loaned equipment, and the franchisee is prohibited from removing or using the equipment as collateral without prior written approval from Sunoco.
This arrangement ensures that the franchisee has access to the necessary infrastructure and equipment to operate the Aplus franchise. However, it also places certain obligations on the franchisee, such as maintaining and repairing the Aplus Store equipment according to the terms outlined in the Aplus Franchise Agreement. Additionally, the franchisee must adhere to specific procedures and regulations related to the underground storage tanks and Motor Fuels, including developing a Release Response Plan and complying with inventory control and leak detection requirements. Failure to comply with these provisions constitutes a material default under the terms of the lease.