Besides the requirements in this section, what other agreement gives Sunoco the right to audit and the APlus franchisee the obligation to maintain records?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
The terms of this Section 2.18 are in addition to and shall in no way limit Sunoco's right of audit and your obligation to maintain records under the APlus Franchise Agreement.
In addition, to ascertain your compliance with this Lease and any temporary voluntary allowance program that may be in effect, you hereby agree that Sunoco shall have the right at all reasonable times to verify sums due from you to Sunoco and to verify
your reports and to ascertain volumes of Sunoco Branded Motor Fuel in tanks and any and all volume information appearing on Sunoco branded motor fuel dispensing devices and to inspect and audit your books and records, including records of preventive and remedial maintenance and daily inventory records referred to in Section 2.11(A) and all permits and licenses.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, in addition to the requirements detailed in Section 2.18, Sunoco's right to audit and the franchisee's obligation to maintain records are also specified in the APlus Franchise Agreement. Furthermore, to ensure compliance with the lease agreement and any temporary voluntary allowance programs, Sunoco retains the right to verify sums due, inspect and audit books and records, including maintenance and inventory records, and examine all permits and licenses.
This means that as an Aplus franchisee, you are contractually obligated under both the APlus Franchise Agreement and the Lease to allow Sunoco access to your financial and operational records for auditing purposes. This obligation extends not only to verifying sales and royalty payments but also to ensuring compliance with maintenance standards and inventory management. The Lease agreement specifically allows Sunoco to verify sums due, inspect records, and ascertain fuel volumes.
The implications of these audit rights are significant. Aplus franchisees must maintain meticulous and accurate records, as any discrepancies found during an audit could lead to financial penalties or even termination of the franchise agreement. The franchisee should be prepared to provide all necessary documentation, including sales records, vendor invoices, and inventory reports, upon request.
It is also important to note that Sunoco's audit rights extend beyond the standard financial audit to include inspections of the physical premises and equipment. This comprehensive oversight allows Sunoco to ensure that franchisees are adhering to brand standards and maintaining the quality of the Aplus system. Franchisees should familiarize themselves with all requirements outlined in the APlus Franchise Agreement and the Lease to avoid any potential compliance issues.