What claims related to the operation of the Aplus business, including the condition of the premises, must the franchisee indemnify Sunoco against?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (7) You shall develop a Release Response Plan for Premises. At a minimum, this plan must include emergency phone numbers for:
- (a) local fire and health departments;
- (b) agencies responsible for emergency environmental reporting at the local, state, and federal levels; and
- (c) Sunoco.
- (8) If heating oil is stored in a UST system on the Premises, you must perform manual tank gauging for the UST System during periods when the building's furnace is not in use. There should be no change in the liquid level of the UST when the furnace is not in use. If monitoring detects a change over time, begin necessary suspected release procedure.
- (9) If Sunoco makes a maintenance service call for a leak or alleged Product loss, the following procedure must be employed:
- (a) You (or an authorized employee) may observe the petroleum dispensing equipment being checked by Sunoco maintenance representatives.
- (b) Upon conclusion of the service call, Sunoco maintenance representatives will summarize findings and action taken, if any, on a "Receipt of Services Performed" which will then be signed by you (or an authorized employee), with a copy left on Premises.
- (10) You shall be solely liable for all related Product losses, claims, fines, penalties, consent orders, regulatory notice of violations, customer complaints, and damage to personal and real property should you fail to comply with these provisions. Additionally, if after written notice from Sunoco, any inventory control, monitoring leak monitors, leak detection reports and records and/or any other compliance records are not provided within the time period set forth in the notice, Sunoco may immediately suspend deliveries of Product to you until such reports and records are received by Sunoco.
- (11) Your failure to comply with the above items shall constitute a material default under the terms of this Lease.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee is solely liable for losses, claims, fines, penalties, consent orders, regulatory notice of violations, customer complaints, and damage to personal and real property if they fail to comply with the outlined provisions. These provisions relate to maintaining a Release Response Plan for the premises, monitoring heating oil UST systems, and adhering to specific procedures when Sunoco performs maintenance service calls for leaks or product loss.
Specifically, the franchisee must develop a Release Response Plan that includes emergency contact information for local fire and health departments, agencies responsible for emergency environmental reporting, and Sunoco itself. If heating oil is stored in a UST system, the franchisee must perform manual tank gauging when the building's furnace is not in use to detect any changes in liquid levels that could indicate a leak. Furthermore, the franchisee or an authorized employee may observe petroleum dispensing equipment being checked by Sunoco maintenance representatives during service calls and must sign a "Receipt of Services Performed" summarizing findings and actions taken.
Failure to comply with these inventory control and monitoring procedures, or failure to provide required compliance records after written notice from Sunoco, constitutes a material default under the lease terms. In such cases, Sunoco may suspend product deliveries until the necessary reports and records are received. This underscores the importance of diligent compliance with environmental and operational standards to avoid potential liabilities and business disruptions for the Aplus franchisee.