What businesses are specifically excluded from being considered a 'Competitive Business' for an Aplus franchise?

According to Aplus's 2024 Franchise Disclosure Document, a 'Competitive Business' is defined as any business that offers services similar to those of Aplus or Sunoco, or that could potentially use Aplus's trade secrets to their disadvantage. However, there are specific exceptions to this definition.

Specifically, the definition of 'Competitive Business' does not include (a) any business operated by the franchisee under a franchise agreement with Aplus, meaning franchisees are allowed to operate multiple Aplus franchises, and (b) any business operated by a publicly-held entity in which the franchisee owns less than a five percent (5%) legal or beneficial interest. This implies that franchisees can invest in publicly traded companies that might be considered competitive to Aplus, so long as their ownership stake remains below 5%.

This definition is important for prospective franchisees as it clarifies the scope of activities they must avoid to remain in compliance with the franchise agreement. It allows franchisees to operate other Aplus franchises and have minor investments in publicly held competitors without violating the agreement. Franchisees should carefully consider this definition and seek legal counsel if they have any doubts about whether a particular business activity would be considered competitive.